Canaccord Genuity analyst Joseph Vafi maintained a Buy rating on Repay Holdings (RPAY – Research Report) on May 10 and set a price target of $13.00.
Joseph Vafi has given his Buy rating due to a combination of factors that highlight Repay Holdings’ robust financial performance and strategic advantages in the payments industry. Repay’s diversified market involvement—spanning consumer loans, healthcare, mortgage, and B2B—has demonstrated effectiveness, with the company showing strong pro forma revenue and gross profit growth. Furthermore, the substantial year-over-year increase in free cash flow, alongside the expansion of its AP supplier network and growth in other key areas, reinforces the company’s positive trajectory. Vafi recognizes the company’s potential for increased EBITDA margins and the leverage to improve these margins further in the forthcoming year.
Vafi’s endorsement also stems from Repay’s strategic positioning and operational efficiencies. The in-house back-end processing capabilities acquired through Trisource provide a cost advantage and competitive edge by reducing third-party processing expenses, which are significant components of gross margin costs. Additionally, Repay’s successful track record in mergers and acquisitions has broadened its reach, transforming it from a consumer loan-centric payment solution to a versatile player across the economy. The ongoing momentum in B2B, accounts payables, and receivables offerings, coupled with effective cross-selling strategies and increasing total addressable market via its expansion in electronic payments, further underlines the basis for Vafi’s optimistic outlook on Repay Holdings.
In another report released today, Barclays also maintained a Buy rating on the stock with a $12.00 price target.
RPAY’s price has also changed dramatically for the past six months – from $6.440 to $10.330, which is a 60.40% increase.
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Repay Holdings (RPAY) Company Description:
Repay Holdings Corp. engages in the provision of integrated payment processing solutions to verticals that have specific transaction processing needs. The company is headquartered in Atlanta, GA.
