In a report released today, Scott Buck from H.C. Wainwright maintained a Buy rating on FlexShopper, with a price target of $0.50.
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Scott Buck’s rating is based on the belief that despite the current challenges FlexShopper is facing, there is significant potential value in the company’s core assets. These assets include technology, intellectual property, and merchant relationships, which could be leveraged to create substantial value if managed effectively.
Although the company is experiencing executive turnover and financial difficulties, including a default notice that has impacted its ability to originate new loans, Buck sees potential upside. The valuation of FPAY shares at $0.50 reflects a 20% increase from current trading levels, suggesting that the market may be undervaluing these assets. Buck acknowledges the increased risk due to management changes and financial uncertainties, but maintains a Buy rating, anticipating that the right management could unlock the company’s intrinsic value.