Repay Holdings: Hold Rating Amid Client Losses and Revised Growth Projections

Citi analyst Andrew Schmitt maintained a Hold rating on Repay Holdings (RPAY – Research Report) yesterday and set a price target of $4.50.

Andrew Schmitt has given his Hold rating due to a combination of factors affecting Repay Holdings. The company’s first-quarter performance was largely in line with expectations, though it continues to face challenges from client losses. While the Consumer Payments segment met estimates, the Business Payments segment performed slightly better. Repay Holdings has provided a forward outlook indicating a sequential increase in gross profit growth, with expectations of reaching high-single to low-double digit growth by the fourth quarter of 2025 and a free cash flow conversion rate exceeding 60% by the same period.
Despite these positive elements, Schmitt’s Hold rating reflects a cautious stance due to reduced growth estimates in the Consumer Payments segment for fiscal year 2025, influenced by the ongoing impact of client losses. Consequently, the target price for the stock has been lowered from $8 to $4.50, aligning with the revised growth projections and market volatility. The shift to a Neutral/High Risk rating underscores the uncertainties in improving growth and cash flow, as well as the current volatility of the stock.

In another report released on May 14, Morgan Stanley also maintained a Hold rating on the stock with a $4.50 price target.

Based on the recent corporate insider activity of 76 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of RPAY in relation to earlier this year.