Berenberg analyst Mark Palmer upgraded Marqeta (MQ) to Buy from Hold with a price target of $8, up from $5, after the company announced a four-year extension of its contract with Block (SQ) to power its Cash App card product. While Marqeta’s near-term operating performance will reflect the economics of the Cash App renewal, which were “predictably” much reduced from what they had been in the prior deal given Block’s strong bargaining position, the company will now be able to establish a new baseline from which to grow during the next few years so the deal removes “a significant overhang on the stock,” the analyst tells investors.
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Read More on MQ:
- Marqeta (NASDAQ:MQ) Soars On Robust Q2; Bags Cash App Contract Extension
- Marqeta reports Q2 EPS (11c), consensus (9c)
- Marqeta announces four year extension to Cash App contract
- Notable companies reporting after market close
- Deutsche sees catalysts for Marqeta, including Square renewal
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