Nuvei downgraded to Neutral from Buy at Goldman Sachs

Goldman Sachs analyst Will Nance downgraded Nuvei to Neutral from Buy with a price target of $22, down from $41, after its Q2 earnings miss and below-consensus guide. The prior Buy recommendation was predicated on the company returning to 20%+ growth as the business lapped headwinds from crypto related businesses, but the firm now has reduced visibility into the business, following the significant reduction in the company’s outlook and the reduction in the company’s long term guidance, the analyst tells investors in a research note. Nuvei could be capable of putting up growth within its targeted range over time, but this is highly dependent on the company maintaining a mid to high 20s growth rate in its e-commerce segment, in which the company reduced its near term growth expectations, Goldman Sachs added.