In a report released on February 27, Cassie Chan from Bank of America Securities reiterated a Buy rating on Marqeta (MQ – Research Report), with a price target of $5.50.
Cassie Chan has given her Buy rating due to a combination of factors highlighting Marqeta’s positive trajectory. The company’s management expressed optimism during their earnings call, emphasizing the growing momentum in embedded finance and strong underlying trends. The acquisition of TransactPay, expected to close in the third quarter of 2025, is projected to enhance Marqeta’s program management capabilities in the UK and Europe, contributing a 1% increase to net revenue and gross profit growth without affecting EBITDA.
Additionally, Marqeta’s fourth-quarter gross profit exceeded expectations due to successful new program launches and favorable customer mix. The company anticipates a mid-high 20% growth in total payment volume for 2025, despite a lower net revenue take rate. Marqeta also expects net revenue growth to accelerate by 1% each quarter in 2025, with significant gross profit growth in the second quarter. These factors, along with the company’s reiterated goal of achieving GAAP profitability by the end of 2026, underpin Cassie Chan’s Buy rating.
In another report released yesterday, Mizuho Securities also maintained a Buy rating on the stock with a $6.00 price target.
MQ’s price has also changed moderately for the past six months – from $5.310 to $4.250, which is a -19.96% drop .