Wells Fargo initiates Paymentus with an Equal Weight, $17 price target

As previously reported, Wells Fargo initiated coverage of Paymentus with an Equal Weight rating and $17 price target. Despite a large runway for counter-cyclical opportunities in an under-penetrated bill pay market, the firm believes the near-term demand outlook and upside potential may be lighter than bulls may prefer. While Wells thinks management has made admirable strides in restoring credibility, it believes the combination of a model with limited upside potential in any given quarter/year, and its view that the current multiple reflects Paymentus’ growth, margin and counter cyclical traits appropriately, leaves the firm sidelined at this time.