Canaccord Genuity analyst Joseph Vafi maintained a Buy rating on Repay Holdings (RPAY – Research Report) yesterday and set a price target of $12.00.
Joseph Vafi has given his Buy rating due to a combination of factors that highlight Repay Holdings as a promising investment opportunity. The company is recognized as a solid mid-cap fintech player with a robust margin structure and strong free cash flow conversion, which positions it close to the Rule of 40. Despite some challenges in top-line growth due to customer losses from mergers and acquisitions and reduced political media spending, the company’s valuation is currently low, making it an attractive risk/reward proposition.
Moreover, Repay Holdings is undertaking a comprehensive strategic review, which could make it an appealing acquisition target for larger payment companies, potentially expanding their total addressable market. The company’s investments in its enterprise salesforce and focus on electronic payment trends, such as B2B AP automation, further strengthen its market position. Additionally, improvements in free cash flow conversion and a reduction in capital expenditure as a percentage of revenue are expected to benefit the company’s financial performance in the medium term.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $11.00 price target.
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