Analyst Joseph Vafi from Canaccord Genuity maintained a Buy rating on Repay Holdings (RPAY – Research Report) and keeping the price target at $12.00.
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Joseph Vafi has given his Buy rating due to a combination of factors that highlight Repay Holdings’ potential for growth and profitability. Despite some recent challenges, such as the decline in political ad spend and client losses due to mergers and acquisitions, Repay remains a robust mid-cap fintech company with strong margins and free cash flow conversion. These attributes position the company close to achieving the Rule of 40, which is a significant indicator of financial health in the tech industry.
Additionally, Repay has completed a strategic review and opted for organic business model expansion, which is expected to accelerate gross profit growth throughout the year. The company’s investment in its software infrastructure is largely complete, allowing for reduced capital expenditures and improved free cash flow conversion, anticipated to exceed 50% by the second quarter and increase further by year-end. These strategic moves, combined with a focus on expanding its total addressable market and enhancing its customer base, underpin Vafi’s optimistic outlook and Buy rating for Repay Holdings.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $6.00 price target.
RPAY’s price has also changed dramatically for the past six months – from $8.670 to $3.950, which is a -54.44% drop .