Analyst Mark Palmer of Benchmark Co. reiterated a Buy rating on Repay Holdings (RPAY – Research Report), with a price target of $12.00.
Mark Palmer has given his Buy rating due to a combination of factors including Repay Holdings’ strategic initiatives and potential market interest. The company’s CEO, John Morris, has expressed a commitment to enhancing shareholder value, which has been demonstrated by the launch of a strategic review to explore various alternatives, such as a potential sale or take-private transaction. This move indicates a proactive approach to addressing the gap between the perceived value of the company and its market valuation.
Despite the company’s recent revenue and gross profit falling short of expectations, the strategic review and the potential for attracting bids at a premium provide a positive outlook. The company’s position as one of the few remaining publicly traded integrated payments firms increases its attractiveness to potential strategic and financial bidders. Furthermore, the discount valuation of its shares offers downside protection, making it a compelling investment despite current challenges.
In another report released today, Barclays also maintained a Buy rating on the stock with a $11.00 price target.
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