Analyst Andrew Bauch of Wells Fargo maintained a Hold rating on Marqeta (MQ – Research Report), retaining the price target of $4.00.
Andrew Bauch has given his Hold rating due to a combination of factors surrounding Marqeta’s recent performance and strategic changes. The company reported strong fourth-quarter results, surpassing expectations in terms of net revenue, gross profit, and adjusted EBITDA. However, despite these positive financial metrics, Bauch remains cautious, noting that Marqeta still faces challenges in building investor confidence, particularly after a previously disappointing third-quarter guidance.
Additionally, the transition in leadership, with the CFO stepping in as interim CEO, and the strategic acquisition of TransactPay, add layers of uncertainty that warrant a Hold rating. While the acquisition could potentially enhance Marqeta’s capabilities, the full impact and strategic rationale are yet to be clarified. Bauch is also awaiting further updates on the banking environment and customer launch timelines, which are crucial for assessing Marqeta’s future growth trajectory.
In another report released today, KBW also maintained a Hold rating on the stock with a $4.00 price target.
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