William Blair analyst Christopher Kennedy has maintained their neutral stance on MQ stock, giving a Hold rating today.
Christopher Kennedy has given his Hold rating due to a combination of factors influencing Marqeta’s current and future performance. The company has experienced a recent increase in stock value following a CEO transition and the acquisition of TransactPay, along with management’s reaffirmation of their initial 2025 gross profit growth guidance. Despite these positive developments, there remains a cautious outlook on Marqeta’s ability to meet its adjusted EBITDA target for 2025, although the current guidance suggests a slightly higher range.
Marqeta’s recent quarterly results have shown some promise, with better-than-expected top- and bottom-line performance due to new client ramp-ups and incentive benefits. However, the growth projections for the coming quarters and 2025 remain modest, and the progression is expected to be uneven due to various factors. While the company is making strategic moves such as partnerships with American Express and Mastercard, and a focus on expanding its platform and solutions, the overall visibility remains low, prompting a Hold rating.
In another report released today, KBW also maintained a Hold rating on the stock with a $4.00 price target.