Over the past two years, the software industry has grown significantly, driven by accelerating digital transformation. The changing IT landscape demands a shift to services, such as software-as-a-service (SaaS). So, the tech sector is evolving, supported by…
innovation and technological advancements, including artificial intelligence (AI), 5G, cloud, machine learning, DevOps, software architecture and development.
Despite concerns about the Fed’s plan to increase interest rates to combat inflation, software companies are expected to sustain high growth rates for longer periods. Software companies are expanding and upgrading their business models and are accelerating their growth driven by innovation.
Given the backdrop, Wall Street analysts expect software stocks Payoneer Global Inc. (PAYO – Get Rating), Phunware, Inc. (PHUN – Get Rating), and Exela Technologies, Inc. (XELA – Get Rating) to rally in price in the coming months.
Click here to check out our Software Industry Report for 2022
Payoneer Global Inc. (PAYO – Get Rating)
PAYO is a cross-border payment and commerce-enabling platform. The New York City-based company offers a wide range of services, including cross-border payments, tax solutions, working capital, merchant services, and risk management. It caters to digital businesses, online sellers, and freelancers worldwide to manage their international payments.
On Dec. 15, 2021, PAYO expanded its partnership with the Awin Group, a global marketing technology company, to provide best-in-class payment services to Awin’s publisher base around the globe. The partnership is expected to expand PAYO’s customer reach and boost revenue streams.
On Dec. 7, 2021, PAYO offered working capital to Walmart Inc. (WMT) U.S. Marketplace sellers to support their growth by reinvesting in their business. The offering includes three flexible Capital Advance programs that allow sellers to choose the one that best fits their business needs. This offering might reach a new market and increase profitability for the company.
In its fiscal year 2021 third quarter, ended Sept. 30, PAYO’s revenues increased 35.5% year-over-year to $122.65 million. PAYO’s adjusted EBITDA increased 137.9% year-over-year to $6.13 million. The company’s cash and cash equivalents increased 18.9% over nine months ended Sept. 30, 2021, to come in at $4.25 billion. PAYO’s total assets have grown 18.8% over nine months to $4.36 billion.
The $559.75 million consensus revenue estimate for the fiscal year 2022, ending Dec. 31, 2022, represents a 21.6% year-over-year growth from the same period in 2021. The Street expects PAYO’s EPS to improve 68.2% year-over-year in the next fiscal year.
Over the past five days, PAYO has gained 5.2% in price. Of the two Wall Street analysts that rated PAYO, one rated it Buy, while one rated it hold. The 12-month median price target of $10.75 indicates a 104.4% potential upside from yesterday’s closing price of $5.26. The price targets range from a low of $8.50 to a high of $13.00.
Phunware, Inc. (PHUN – Get Rating)
PHUN is an Austin, Tex.-based integrated software platform provider that equips companies with the products, services, and solutions to engage, manage, and monetize their mobile application portfolios. The company’s products and services include cloud-based mobile software, content management, marketing automation, advertising, and location-based services.
This week, PHUN partnered with Campaign Nucleus to integrate the capabilities of Smart Advocacy Solution with politicians and advocacy groups to personalize their…
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