Nuvei (NASDAQ:NVEI) (TSE:NVEI) stock fell about 10% in the extended trading session yesterday despite reporting better-than-expected results for the Fiscal fourth quarter. Following the release of Q4 earnings, Scotiabank analyst Kevin Krishnaratne reiterated a Buy rating on NVEI stock with a price target of $35 (implying 38.5% upside potential).
The company provides payment technology solutions to merchants and partners.
Q4 Financial Highlights
The company’s Q4 adjusted earnings per share remained flat year-over-year at $0.47 and surpassed analysts’ expectations of $0.45. Meanwhile, revenue increased 46% to $321.5 million and came above the consensus estimates of $319.53 million. Furthermore, total volume rose by 53% to $61.8 billion during the fourth quarter.
In terms of revenue distribution by sales channels, the company witnessed 12% year-over-year revenue growth in the global commerce sales channel, representing 56% of total Q4 revenues. Additionally, revenue from B2B, government, and integrated software vendors saw a 19% rise, while revenues from small and medium-sized businesses (SMB) increased by 2%.
Outlook
Looking ahead, Nuvei expects Q1 revenue in the range of $322 million to $330 million and adjusted EBITDA between $110 million and $116 million. In addition, the company projects that the trading volume will come in the range of $57 billion-$58 billion.
For full-year 2024, NVEI expects revenue to be between $1,340 million and $1,380 million. Also, the company anticipates that adjusted EBITDA will be in the range of $480 million to $510 million. Total volume is expected to come in the range of $246 billion to $252 billion.
Is Nuvei a Good Stock to Buy?
Wall Street analysts have a Strong Buy consensus rating on NVEI stock based on seven Buys and two Holds assigned in the past three months. The average NVEI price target of $30.72 per share implies a 21.6% upside potential. Shares of the company have gained over 37% over the past six months.
