Positive Outlook for Usio: Buy Rating Affirmed Amid Revenue Growth and Strategic Initiatives

Analyst Scott Buck of H.C. Wainwright maintained a Buy rating on Usio (USIO – Research Report), retaining the price target of $4.00.

Scott Buck has given his Buy rating due to a combination of factors that suggest a positive outlook for Usio’s future performance. Despite a recent decline in Usio’s stock price following first-quarter results, the company has reaffirmed its revenue growth guidance of 14% to 16% for 2025, indicating a significant acceleration compared to the previous year. This confidence is bolstered by a robust implementation queue, a strong sales pipeline, and the launch of the Usio One initiative, which is expected to enhance cross-selling opportunities across its business lines.
Additionally, Usio is largely insulated from broader macroeconomic concerns, as its billings are primarily tied to stable sectors like mortgages and utilities. The challenging economic environment has also opened new business avenues for Usio, particularly in prepaid and output solutions. While recent trading has seen USIO shares underperform, Buck believes that meeting growth expectations will attract more investor interest throughout 2025. Therefore, he recommends accumulating shares now, anticipating stronger financial results in the latter half of the year, maintaining a Buy rating with a $4.00 price target.