This approach gives investors the chance to participate in the ongoing secular shift to electronic payments and to enterprise digital transformation.
According to Tigress, the payment processor is well-positioned to benefit from a growing market within the payment industry.
"[Paya's] niche focus on overlooked and underserved industries and customers provides a significant revenue growth opportunity to increase its market penetration and customer base," Tigress said.
The firm said Paya's potential US-based payment volumes are currently near $1 trillion, based on 2019 market value levels, and are expected to grow at over 10% per year for the succeeding years.
The firm initiated its coverage on the company with a buy rating and a price target of $15.
Paya shares closed 5.5% lower on Friday.