40% Upside Potential for Nayax: Analysts Point to Exceptional Opportunity
American investment bank KBW has upgraded Nayax stock to "outperform" with a target price of $75 and a 40% upside. Analysts state that recent declines are an overreaction and represent an attractive buying opportunity.
Positive news for the fintech company Nayax: The American investment bank KBW has decided to upgrade its recommendation for the company's stock from "market perform" to "outperform," while maintaining the target price at $75. This price reflects an upside potential of about 40% relative to the stock price at the time of the report's publication.
According to the analysts, the sharp declines recorded by the stock this week are an "overreaction" by the market to the downward revision of the free cash flow forecast for 2026. KBW reassures investors, explaining that the decrease in cash flow stems from a planned acceleration of investments in growth and does not indicate weakness in core operations, as the revenue and EBITDA forecasts for that year remained unchanged.
The investment bank highlights several key growth engines, primarily the electric vehicle (EV) charging sector, which is in the early stages of penetration, and the shift to a mix of recurring revenues (software and payments) characterized by significantly higher profitability than hardware sales. In addition, the company's enormous expansion potential in the unattended payment market is emphasized, where about 70% of machines worldwide are still cash-based.
Regarding the company's 2028 targets, which include an ambitious goal of $300 million in EBITDA, KBW notes that the investment thesis does not depend on achieving them in full. In their assessment, it is sufficient for management to continue progressing at a long-term EBITDA growth rate of 35%-40% per year, supported by a minimal churn rate of 3%.
