$17 target! Valuation. We are maintaining our BUY rating and C$17/share target price. We are rolling our valuation to F24 and our target price implies ~3.5x F24E Sales. Payfare currently trades at 1.1x F24E EV/Sales, a discount to a peer group of Payment companies trading at 3x, despite significantly higher growth rates. We think execution on organic user growth via penetration of existing platforms and on-going margin expansion will potentially warrant multiple expansion for Payfare moving forward. Key risks to our target include, the macroeconomic environment and regulation impacting GIG workers.
https://research.viiicapital.com/Reports/Research/2023/March/PAY032423.pdf