Paysafe slides on PT cuts after co lowers earnings forecast

Weds Co

11/08/2022 12:12

** U.S.-listed shares of UK-based payments firm Paysafe
 PSFE.N  down ~10% premarket after brokerages cut PTs on the
stock after results
    ** PSFE on Weds reported quarterly net loss of $631.5
million compared to profit last year, and trimmed full-year
revenue forecast to between $1.47 bln and $1.49 bln, from its
prior forecast of $1.53 bln to $1.58 bln
    ** Co also cut annual adjusted EBITDA outlook to $400
mln-$415 mln from $440 mln-$460 mln  urn:newsml:reuters.com:*:nBw2JCDFca
    ** RBC Capital Markets says volume and revenue decline was
due to unfavorable FX and weakness in European iGaming stemming
from macro conditions and ongoing regulatory headwinds for
European operators, especially in Germany and the Netherlands
    ** Brokerage cuts PT to $3 from $4, lowers rating to "sector
perform" from "outperform" 
    ** Credit Suisse cuts PT to $2 from $2.25, lowers rating to
"underperform" from "neutral"
    ** PSFE is subject to a number of risks that pose a threat
to expectations in both the near- and longer-term including mix
skew toward discretionary spending, recent commentary around
softening European gaming trends, regulatory headwinds in
Europe, and broader competitive and positioning concerns across
both segments - Credit Suisse 
    ** Stock down 43% YTD

 (Reporting by Yuvraj Malik)
 ((yuvraj.malik@thomsonreuters.com))