Nuvei shares plummet as short seller says it's betting against payments processor
BNN Bloomberg
Nuvei Corp. shares sank Wednesday after a prominent short seller said it was betting against the Montreal-based payment processor.
Nuvei Corp. shares sank Wednesday after a prominent short seller said it was betting against the Montreal-based payment processor.
In an elaborate report, Spruce Point Capital criticized Nuvei management and questioned some of the company’s acquisitions. It also said it believes Nuvei shares could fall as much as 60 per cent.
Currently, 11 analysts have a buy recommendation on the stock, three analysts say it’s a hold, and there are zero sell recommendations among analysts tracked by Bloomberg.
“Nuvei commands a premium valuation to financial technology peers at 15x and 34x 2022E sales and EBITDA, but we believe it should trade at a discount to incorporate our documented concerns,” Spruce Point said in a statement that accompanied its report.
A spokesperson for Nuvei was not immediately available for comment on Spruce Point’s claims.
In third-quarter results released Nov. 9, Nuvei said it swung to a profit as revenue rose 96 per cent year-over-year to US$183.9 million as payments volume rose 88 per cent to US$21.6 billion.
