William Blair initiated research coverage of Payoneer Global Inc. (PAYO $9.44). Payoneer provides a global, cloud-based payments and commerce-enablement platform to more than 5 million small businesses and many of the world’s largest digital marketplaces.

Analyst Robert Napoli estimated the company would generate revenue of $437.6 million in 2021, $537.3 million in 2022, and $671.6 million in 2023.

Napoli said, “Payoneer has developed a cloud-based, API-driven, global network that enables customers to participate in digital commerce and helps streamline the complexities of cross-border payments. Through a single connection, customers gain access to its expanding product suite, regulatory/compliance expertise, and global network that includes over 190 countries, with over 7,000 trade corridors. We estimate that core payouts and withdrawals represent close to 90% of total revenue, but Payoneer has momentum with additional products and services that leverage and add value to its ecosystem. Payoneer’s global e-commerce marketplace integration represents a strong competitive advantage, in our view. Depending on the study, marketplaces are estimated to account for 38% to 57% of digital commerce, and digital commerce has historically grown at a 10% compound annual clip to over $26 trillion in 2018, according to the UN Conference on Trade and Development. We believe COVID has accelerated this shift, and Payoneer’s solutions enable SMBs to access to this global opportunity. The strong secular tailwinds should drive new sellers to Payoneer and grow existing sellers. Further, the buildout of new services should support growth with the potential for acceleration.”

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William Blair or an affiliate received compensation for investment banking services or non-investment-banking services from Payoneer Global Inc. within the last 12 months. Payoneer Global Inc. is or was, within the last 12 months, an investment banking client of William Blair and/or one or more of its affiliates.

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Current Ratings Distribution (as of 8/2/21)

Coverage Universe
Outperform (Buy): 77%
Market Perform (Hold): 23%
Underperform (Sell): 1%

Inv. Banking Relationships*
Outperform (Buy): 30%
Market Perform (Hold): 12%
Underperform (Sell): 0%

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