In general, companies which are involved in digital payments and e-commerce are well positioned to benefit from growing consumer trends, and PaySafe Limited (PSFE) is no exception. The multinational also operates an iGaming payment system, which integrates digital wallets, cards, and cash for consumers to easily access funds for online gambling and other purchases. (See PSFE stock analysis on TipRanks)

Publishing an optimistic report on the company, four-star analyst David Togut of Evercore ISI wrote that in the long-term, PaySafe has an “attractive, low double-digit organic revenue,” and has a leading role in the iGaming industry. Togut initiated a Buy rating on the stock, as well as a price target of $16, reflecting a 30.51% potential upside from the company’s current valuation.

Togut wrote that the specialized payments platform generates 75% of the company’s revenue through online payments, and in turn is expected to continue to benefit from the consumer drift away from brick-and-mortar retail.

Furthermore, he praised PaySafe for its “robust risk management operation,” and its high rankings in several key performance indictors globally, including cash network, stored digital wallet value, and amount of partnered independent merchants.

Togut was also quick to explain that the emerging U.S. iGaming industry will provide a boon for PaySafe, as several states have recently passed legislation legalizing sports betting. Those states include Arizona, Maryland, New York, and Wyoming.

Likewise, he elaborated that in Canada, the company runs the entire iLottery business and almost all of the iGaming there.

On TipRanks, PaySafe has an analyst rating consensus of Strong Buy, based on 6 Buy ratings. Average PFSE analyst price target is $17.67 per share, representing a potential upside of 44.13%.

"Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment."