CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Nuvei (NVEI) up 12% after BMO upgrade

By Robert Davis

17:59, 9 December 2021

Payment transaction with smartphone
BMO maintains its $114 per-share price target – Photo: Shutterstock

The stock of Nuvei Corporation shot up 12% Thursday after the Bank of Montreal (BMO) upgraded the Canadian payment processing company to “outperform” from “market perform” and maintained its price target.

Analyst James Fotheringham said the bank is maintaining its $114 per-share price target, implying a significant upside from its current list price of $65.77. The bank sees an upside of $150 and a downside of $46. Both are close to the company's trading range. Nuvei hit a 52-week high of $140.23 on 7 October and a 52-week low of $46.69 on 9 March.

Including Thursday’s rally, the stock is down more than 30% over the last week.

Short seller report

Fotheringham added that the bank’s rating comes after a “detailed review” of a short seller report that alleged Nuvei is covering up several shortcomings. Short sellers are investors who profit on stock price declines.

The report was written by Spruce Point Management, a New York-based research firm. It alleges that Nuvei’s financial disclosures are “weak” and that the company’s results are “being temporarily enhanced from concentrated exposure to high-risk gaming and eCommerce.”

Spruce Point further alleges that the company’s Vice President of Partnerships was implicated in a $100m fraud scheme and that the company does business with the adult film industry, making it ineligible

Nuvei’s stock tumbled by nearly 40% on Wednesday after the report was issued.


0.63 Price
-0.200% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168


16,001.20 Price
+0.470% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 7.0


39,635.55 Price
-0.030% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

Oil - Crude

74.50 Price
-1.560% 1D Chg, %
Long position overnight fee -0.0136%
Short position overnight fee -0.0083%
Overnight fee time 22:00 (UTC)
Spread 0.040


In his note obtained by, Fotheringham said BMO hosted a call with Nuvei’s executives where several issues raised in the short seller report were discussed.

During the call, Nuvei reaffirmed its financial outlook for 2022, the note says.

Next year, the company expects to earn $933m (£705m) in revenue and produce core earnings per share of $2.22.

Outside of the allegations, Fotheringham also noted that Nuvei’s stock is “particularly valuation-sensitive to changes in expectations with respect to annual volume growth.” He adds that this metric will be “a key driver of forward revenue growth,” which he says is the stock’s key determinant of valuation.

Nuvei previously said third quarter revenue increased 96% to $183.9m year over year. Net income was $28m compared to a net loss of $77.9m in the prior year third quarter.

The company raised its 2021 financial outlook. It now sees full year revenue of $717–$723m, up from $690–$705m previous guided.

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading