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  5. NVEI: Hi folks, how significant is the announced partnership between Nuvei & Adobe. [Nuvei Corporation]
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Q: Hi folks, how significant is the announced partnership between Nuvei & Adobe...markets liked the news with 6% pop...is this a "new" partnership for Nuvei??, and if so, what future potential could come the way to Nuvei...I believe they recently hooked up with Microsoft in similar payments process (albeit relatively small)...after disasterous Q2...is there light at the end of the tunnel????....thanks as always for great service, jb Piedmont QC
Asked by John on January 25, 2024
5i Research Answer:

This is a new partnership with Adobe, which now allows businesses operating on Adobe Commerce to simplify payments and expand into new markets. The stock reacted positively to the news, however, the name still has a long way to go to a full recovery. The news is positive, however, it is a small stepping stone towards achieving better fundamentals. The stock continues to be cheap, and we feel that over a long period of time, its strong growth rates can help support its price. We continue to hold the name in our growth model portfolio, expecting that it can use its positive free cash flows towards growth, buybacks, and overall stabilization of its business. We think there is light at the end of the tunnel, but we believe patience will be required and also a strong market backdrop.