Repay Holdings Faces Growth Challenges Amid Client Losses but Sees Potential for Recovery in 2025

Analyst James Faucette from Morgan Stanley maintained a Hold rating on Repay Holdings (RPAY – Research Report) and keeping the price target at $9.00.

James Faucette has given his Hold rating due to a combination of factors affecting Repay Holdings. The company has experienced growth challenges primarily due to previously announced client losses in 2024, which have been significant but appear to be isolated incidents. Despite these setbacks, there is optimism for a potential acceleration in the second half of 2025, driven by investments in organic growth and strategic initiatives following a recently concluded strategic review.
Management’s confidence is bolstered by stable underlying trends and resilience in non-discretionary consumer spending, despite economic uncertainties. However, concerns remain about the vulnerability of Repay Holdings’ end markets, such as personal lending and auto loans, and the risk of further client losses. The Business Payments segment showed positive growth, supported by new enterprise clients and payment monetization initiatives, which could contribute to future performance improvements.