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Is Nuvei Stock A Buy, Sell, Or Hold For 2022?

Jan. 06, 2022 8:30 AM ETNuvei Corporation (NVEI), NVEI:CA15 Comments
The Alpha Sieve profile picture
The Alpha Sieve
2.83K Followers

Summary

  • NVEI’s breadth and depth of offerings give it an edge.
  • NVEI’s growth trajectory is still intact although margin progression could stall in the near term.
  • Given its earnings growth potential relative to its peers, NVEI appears to be attractively priced.
  • NVEI has the cash-generation capacity and the balance sheet to fulfil its inorganic ambitions.
  • The NVEI stock appears to have made a bottom and could work as a speculative buy for aggressive-minded investors.
Close-up of the numbers on a debit card

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Introduction

Nuvei Corporation (NASDAQ:NVEI) is a provider of global payment technology and infrastructure for merchants based in North America, Europe, Asia Pacific, and Latin America. Through its single integration tech platform, Nuvei Corporation helps over 50,000 merchants accept payments across 200 global markets, in over

This article was written by

The Alpha Sieve profile picture
2.83K Followers
Investment research, primarily oriented towards uncelebrated/under-covered stocks and ETFs, across North America, Europe and Asia. Seeks to combine both fundamental and technical disciplines while making an investment/trading proposition.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (15)

B
Holding up decent while many other tech stocks continue to bleed.
B
Partnering with Wix.
@Blue Goose
Already integrated with Shopify.
B
@VanVIC Do you have more info on this? I can't remember seeing any of that on their website or hearing about it on a CC.
Thanks
Ahmed Zaki Khan profile picture
@VanVIC shopify has its own payment gateway system, what benefit does shopify get from partnering with nuvei ?
B
Big upside when they deliver on the next earnings report.
Money Talks! profile picture
@Blue Goose, in the last two days, the stock shot up like a 🚀❗
I'm waiting for a dip. I could have bought @ đź’˛74 Canadian and sold over đź’˛87 in two daysâť—
B
@Money Talks! Waiting for a dip?
It went from the 170's to the 60's rather quickly, and the 60's wasn't that long ago.
Next target is the 50dma at about 105 and change.
b
The bottom line is that if they were a fraud they couldn’t have survived the allegations, but they responded and the allegations have been laid to rest, even though they were too close to the bone. The next few quarters will ultimately be a test of the business model in terms of honesty, but these allegations can be easily won over with significant financial growth, which they seem to be on their way to do just that. I got in with the short report but my holding is very very small. Good job at summarizing the business aspect and the negative report and concluding with a cautious approach for the faint of heart investors.
K
K. Lee
07 Jan. 2022
Nuvei appears to have a lot of dissatisfied customers as a result of their use of independent sales agents, e.g. www.cardpaymentoptions.com/... If these reports are accurate then it could be a significant obstacle for future growth.
DONTIGNY profile picture
@K. Lee

Complaints are mostly originating from physical merchants (15% of the business), which is very typical of the industry, as COVID created financial distress to many small shops.

Having said that, they have sales compliance team now and as a result, much better customer service. They understand the importance of it.

Typical High growth business challenges...
Money Talks! profile picture
Thanks to these Spruce Point short sellers, I made 30% so far on my money trading this stock. Maybe I should hold now, given that I agree with the author that the stock is a buy, a strong buy, in my opinionâť—
DONTIGNY profile picture
Congratulations for this great article and being the 1st to write an extensive view on Nuvei.

This is a GEM đź’Ž at this price.
Roadmap is very clear, which enables 30% CAGR for years to come.

The beauty of high FCF conversion is the ability to acquire emerging companies with complementary capabilities. This is a fabulous infrastructure payment play.
pgallop profile picture
Thanks, very helpful.
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