In a report released today, Scott Buck from H.C. Wainwright maintained a Buy rating on Usio (USIO – Research Report), with a price target of $4.00.
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Scott Buck’s rating is based on several key factors that highlight Usio’s potential for growth and profitability. The company is expected to see accelerated revenue growth beginning in the second half of 2025, driven by new and expanding relationships with independent software vendors (ISVs) and the successful roll-out of the Usio ONE initiative. This initiative aims to enhance cross-selling opportunities across Usio’s business lines, contributing to a high level of revenue visibility and resilience in challenging macroeconomic environments.
Additionally, Scott Buck notes that Usio’s business model allows for improved operating leverage and EBITDA margin expansion as revenue grows. The company is projected to achieve significant revenue growth in 2025 and 2026, with the capacity to increase volumes without substantial headcount additions. This financial outlook, combined with a valuation that represents a substantial upside from current trading levels, supports the Buy rating. However, potential risks such as industry competition and regulatory challenges are acknowledged, but the overall financial profile is deemed attractive for new institutional investors.