OppFi Enhances Support to SalaryTap by Increasing Bank Credit Facility

Financial technology platform OppFi Inc. (OPFI) recently announced the expansion of its bank credit facility from $25 million to $45 million to support its employer payroll-linked loan product, SalaryTap.

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Following the news, shares of the company gained 4.6% to close at $7.68 on Tuesday.

Notably, the company expanded SalaryTap to 33 states in the second quarter by establishing relationships with financial care platforms Best Money Moves and Brightside. Further, the company has plans to widen the product’s presence in additional markets in the fourth quarter of 2021.

The CEO of OppFi, Jared Kaplan, said, “This expanded facility is an important financial milestone for OppFi as it can help us further expand and grow the SalaryTap product and help everyday consumers gain access to simple and affordable financial products. We see a growing market opportunity with this type of product as we look to further expand credit access to millions of consumers who have limited mainstream affordable options.” (See OppFi stock chart on TipRanks)

Recently, D.A. Davidson analyst Chris Brendler reiterated a Buy rating on the stock with a price target of $12, which implies upside potential of 56.3%.

According to the analyst, although the prevalence of the delta variant remains a concern, the company is likely to witness notable growth in revenues from 6.5% in the second quarter to 22% in the third quarter and over 60% by the first quarter of 2022.

Consensus among analysts is a Strong Buy based on 4 Buys and 1 Hold. The average OppFi price target of $11 implies upside potential of 43.2% from current levels.

OppFi scores a 7 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with market expectations. Shares have declined 22% over the past year.