Maxim Group analyst Michael Diana has maintained their bullish stance on USIO stock, giving a Buy rating on March 27.
Michael Diana has given his Buy rating due to a combination of factors including Usio’s reaffirmed guidance for 2025, which projects a revenue growth of 14%-16% year-over-year and an adjusted EBITDA margin of 5%-7%. Despite missing the consensus revenue estimates for 4Q24 due to delays in a significant PayFac deal, the company maintains a strong outlook for 2025, supported by a robust backlog of implementations and a promising pipeline of new deals.
Additionally, Usio’s new integrated marketing strategy, ‘One Usio’, is expected to enhance its market presence by consolidating all its products into a cohesive marketing effort. The company’s solid balance sheet, with $8.1 million in cash, no debt, and positive cash flow, further strengthens its financial position. The stock’s current low EV/revenue multiple of 0.5x, compared to the average of 2.0x among its peers, suggests significant upside potential, justifying the $6.00 price target and a projected 285% return over the next 12 months.
In another report released on March 27, H.C. Wainwright also maintained a Buy rating on the stock with a $4.00 price target.