Marqeta downgraded to Hold from Buy at Deutsche Bank

Deutsche Bank analyst Bryan Keane downgraded Marqeta (MQ) to Hold from Buy with a price target of $4, down from $9. The company slightly missed on Q3 gross profit growth, but beat on adjusted EBITDA on the back of operational discipline, the analyst tells investors in a research note. However, the firm says Marqeta materially cut its outlook due to heightened scrutiny from the banking environment delaying new client ramps and some loss of value-added services from existing customers. Further, a number of Marqeta’s more sophisticated fintech clients opted to take aspects of their program management and bank relationships in-house, Deutsche notes.