Jefferies says Payoneer update points to incremental ex-float revenue pressure

Jefferies notes that Payoneer provided an intra-quarter update yesterday afternoon, during which the company said Q4 revenue is expected to be above the mid-point of guidance on higher float income, but ex-float revenue is now expected to be at the low-end of implied guidance despite volumes trending in-line to slightly better as a higher mix of enterprise is pressuring take rates. The firm, which also notes that the company’s initial look at FY24 is for low double-digit normalized revenue growth, keeps a Buy rating and $7 price target on Payoneer shares.