Paysign Inc (PAYS)

[ebrie014]

BTIG Raises Price Target to 12$. Commentary below.

BTIG reiterating Buy recommendation on Paysign, Inc. (PAYS) – formerly known as 3PEA International – while raising our price target to $12 (from $9.50) based on 19x the company’s FY21E EBITDA of $32.2mm. While shares of PAYS have appreciated by more than 186% since the beginning of the year, we believe the company’s valuation does not fully reflect the upside potential associated with its existing and planned business lines: plasma donation prepaid debit cards, pharmaceutical copay cards, and Paysign Premier debit cards linked to demand deposit accounts, which are its answer to regulatory changes impacting issuers of general purpose reloadable (GPR) debit cards.
We believe PAYS’ soon-to-be-launched Paysign Premier accounts could become a significant contributor to the company’s growth starting in 2020. Management intends to roll out the account gradually beginning in late 2Q19 or early 3Q19 to a portion of the company’s 2.5mm+ plasma donation prepaid cardholders.