Priority Technology Holdings (PRTH) has received a new Buy rating, initiated by TD Cowen analyst, Tal Lev.
Tal Lev’s rating is based on the evolving business model of Priority Technology Holdings, which has transitioned from a traditional merchant acquirer to a diversified provider of integrated financial solutions. This transformation, driven by both acquisitions and organic investments, has allowed PRTH to process a significant volume of transactions annually, serving over 1.2 million active customers across various sectors, including SMBs and enterprises.
Moreover, the company has demonstrated strong financial performance with a notable expansion in adjusted gross margin and a significant reduction in leverage over recent years. PRTH’s countercyclical attributes, particularly in its Enterprise and B2B segments, provide resilience against macroeconomic challenges. The company’s projected long-term growth in revenue, EBITDA, and free cash flow, coupled with its attractive valuation, supports the Buy rating, as it offers potential for substantial returns.
In another report released on March 7, Lake Street also reiterated a Buy rating on the stock with a $13.00 price target.