D.A. Davidson analyst Peter Heckmann upgrades shares of prepaid card provider PaySign (NASDAQ:PAYS) to Buy from Neutral on the prospect of improved results through 2022.
Heckmann expects expanding revenue growth and margins for the next six quarters as volumes at the company's two primary businesses rebound.
Shares of PaySign (PAYS) rise 2.4% in midday trading.
He raises adjusted EBITDA forecast following Q2 results.
Price target of $3.50 implies ~40% upside from Wednesday's close; derived from an enterprise value of just under 25x Davidson's 2023 adjusted EBITDA estimate.