Analyst Cassie Chan of Bank of America Securities reiterated a Buy rating on Marqeta (MQ – Research Report), with a price target of $8.25.
Cassie Chan’s rating is based on a combination of Marqeta’s strong performance in the fourth quarter and positive guidance for the upcoming year. Marqeta outperformed expectations with a solid fourth-quarter beat and provided a stable outlook for the year, indicating the company’s resilience and potential for growth. The company’s ability to renew a significant portion of its total payment volume and exhibit over fifty percent bookings growth in the final quarter of 2023 suggests a strong market position and promising business momentum. Chan highlights Marqeta’s technological edge, particularly in embedded finance and credit sectors, which underpin the Buy rating.
Moreover, Marqeta’s reiteration of its 2024 guidance, despite a few adjustments, reflects a confident outlook for the future, with expectations of accelerated growth in the latter half of the year. The company’s strategic program restructuring and positive business mix are set to contribute to improved margins and reduced network fees. Chan’s revised estimates and increased price objective, supported by a DCF valuation reflecting a lower weighted average cost of capital, underscore a belief in Marqeta’s improved visibility and earnings potential, further justifying the Buy recommendation.
See the top stocks recommended by analysts >>
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.
Marqeta (MQ) Company Description:
Marqeta Inc is a modern card issuing platform. Its platform empowers businesses like Affirm, DoorDash, Instacart, Klarna, and Square to create customized payment cards that provide innovative payment experiences for their customers and end-users. It derives the majority of revenue from Interchange Fees generated by card transactions through its platform. The company also generates revenue from other processing services, including monthly platform access, ATM fees, fraud monitoring, and tokenization services.
Read More on MQ:
