Analyst Hal Goetsch of B.Riley Financial reiterated a Hold rating on Priority Technology Holdings (PRTH – Research Report), with a price target of $5.00.
Hal Goetsch assigned a Hold rating to Priority Technology Holdings based on several contributing factors. The company saw a 14% growth in total revenue, reaching $189M with an adjusted EBITDA of $45M. This was primarily driven by better-than-expected margins in its enterprise segment, which pushed the adjusted EBITDA $5M above the forecast. There was, however, a shortfall in the SMB payments caused by a longstanding reseller diversifying their processing needs, leading to a 6% drop in processing volume.
Revenue in this crucial segment remained stable despite the volume drop, and the loss of the large reseller was partially offset by an increase in active accounts. The company also witnessed significant growth in the enterprise segment, which contributed to better overall growth and margins. Furthermore, the acquisition of Plastiq, a company bought out of bankruptcy, added positively to the B2B segment’s revenue. It’s important to note that the company’s leverage on the balance sheet continues to increase, and management has lowered its revenue forecast to account for the revenue contribution from Plastiq.
Goetsch covers the Financial sector, focusing on stocks such as Fiserv, CoreCard, and Oportun Financial. According to TipRanks, Goetsch has an average return of -19.0% and a 16.67% success rate on recommended stocks.
See today’s best-performing stocks on TipRanks >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Priority Technology Holdings (PRTH) Company Description:
Priority Technology Holdings, Inc. operates as a blank check company, which was formed for the purpose of entering into a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization, or other similar business combination. It operates through the following segments: Consumer Payments and Commercial Payments and Managed Services. The Consumer Payments segment- represents consumer-related services and offerings including merchant acquiring and transaction processing services including the proprietary MX enterprise suite. Either through acquisition of merchant portfolios or through resellers, the Company becomes a party or enters into contracts with a merchant and a sponsor bank. The Commercial Payments and Managed Services segment- represents services provided to certain enterprise customers, including outsourced sales force to those customers and accounts payable automation services to commercial customers. The company was founded on April 23, 2015 and is headquartered in Alpharetta, GA.
Read More on PRTH:
