Payment processing company Nuvei Corporation (NASDAQ:NVEI)(TSE:NVEI) is on the verge of going private. According to a Wall Street Journal report, Advent International, a private equity firm, is in advanced talks to acquire Nuvei, and an official transaction could be announced soon.
Responding to the media reports, the Canadian fintech company acknowledged the speculation surrounding a possible privatization. Nuvei disclosed that its board of directors formed a special committee of independent directors to assess the proposed offer and any other strategic alternatives available.
Notably, NVEI stock has underperformed the broader markets over the past year and is down over 46%. However, it has a market cap of $3 billion, implying it would be one of the largest private-equity deals of recent times.
What is the Outlook for Nuvei Stock?
While it remains to be seen whether Nuvei could go private, Wall Street analysts remain bullish about the company’s prospects. NVEI is focusing on growing its customers, driving product innovation, expanding its geographic footprint, and lowering costs. Further, it is deleveraging its balance sheet, which is positive.
The company continues to scale its platform and expects to process a total volume between $246 and $252 billion, reflecting year-over-year growth of over 21-24%. This will likely support its top-line growth. However, macro-uncertainties remain a concern.
Nine analysts recommend a Buy on NVEI stock, and two maintain a Hold. Overall, Nuvei stock has a Strong Buy consensus rating. Analysts’ average price target on NVEI stock is 31.82, implying 46.23% upside potential over the next 12 months.
