Canaccord view21 Jul 2017 13:02
Canaccord.
We have argued in previous research that Paysafe should dispose of the Asia Gateway business and this would lead to the company being a more attractive target for consolidation. With this morning's approach it appears that whatever the outcome it is likely the Asia Gateway business will be sold. We believe that as a standalone entity this should provide a re-rating. If we assume that Asia Gateway represents 20% of earnings and the business rerates from 15x earnings to 20x earnings, this provides c. 7% potential upside to the stock from yesterday's close of 542p i.e. c580p excluding the proceeds from Asia Gateway which, based on 8x earnings, could be worth 55p per share.