James Faucette, an analyst from Morgan Stanley, maintained the Hold rating on Repay Holdings. The associated price target was raised to $5.00.
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James Faucette has given his Hold rating due to a combination of factors impacting Repay Holdings. The company has experienced one-time client losses that have affected growth, particularly in the Consumer Payments segment, which saw a slight decline in gross profit. However, underlying trends have remained stable, and management has noted resilience in various sub-verticals, despite some softness in the auto sector.
The Business Payments segment has shown potential, with a strong pipeline in healthcare, property management, and municipality verticals, although it faces challenges in accounts receivable as resources are shifted towards accounts payable opportunities. Strategic initiatives and investments, such as the TotalPay migration, are expected to support growth in the second half of the year. Overall, while there are challenges, the underlying growth strategy of recurring and incremental growth from existing clients, along with new client wins, remains largely intact.
In another report released today, KBW also reiterated a Hold rating on the stock with a $5.75 price target.