ipopba/iStock via Getty Images
Canadian payments firm Nuvei Corp. (NASDAQ:NVEI) may fetch $36 a share in a potential takeover from a private equity firm, according to a Raymond James analyst,
The analysis come after a WSJ report on Saturday that PE firm Advent International is nearing a buyout. Nuvei shares jumped 32% on the report on Monday.”
“Given the compelling IRR we would not be surprised to see multiple bidders, and while we wouldn’t rule out a potential strategic coming to the plate, we believe PE is much more likely,” Raymond James analyst John Davis, who has an outperform and $30 price target on Nuvei, wrote in a note on Sunday.
Davis estimates a ~24% IRR assuming a $36 takeout price, which is a 65% premium to Friday’s Nuvei (NVEI) close, or ~10x Raymond James’ estimated 2025 adj. EBITDA.
“All told, it is not shocking to see PE interest given where valuation is and the compelling IRR math, and we think the probability of a deal reaching the finish line is more than likely,” Davis added.
Nuvei (NVEI) responded to the WSJ report late Sunday and said that in connection with expressions of interest received by the company, the board formed a committee to evaluate expressions of interest as well as any other strategic alternatives that may be available.
