Repay inventory soars 43% on robust outcomes, constructive outlook

Repay (NASDAQ:RPAY) inventory soared 43.4% on Thursday after the funds expertise agency’s Q3 outcomes got here in barely above Road estimates and it reaffirmed its FY steering.

D.A. Davidson maintained its Purchase ranking on Repay (RPAY) and set a revised value goal of $18, implying ~311% potential upside to its final shut.

“With stable Q3 outcomes and constructive preliminary commentary on 2023, we expect the sell-off within the shares had been method overdone,” mentioned analyst Peter Heckmann. Shares of Repay (RPAY) declined 68% YTD.

Truist reiterated its Purchase ranking and maintained its $9.50 PT (~117% potential upside). “We predict traders have been upset, following Q2, by slower-than-expected private loans progress, and up to date inventory weak spot seemingly displays auto rev progress fears. Nevertheless, steering implies that Q3 step-down didn’t worsen, which we discover encouraging,” mentioned analyst Andrew Jeffrey.

Truist raised its C23/C24 income/EBITDA estimates to $295M/$130M and $334M/$150M (prior $288M/$127M and $330M/$148M).

Morgan Stanley minimize its PT to $8 from $13 (~83% potential upside) and maintained its Equal Weight ranking, whereas Credit score Suisse lowered its PT to $8.50 from $11 (94% potential upside) and reiterated its Impartial ranking.

Whereas Wall Road analysts on common are bullish on Repay (RPAY), SA Quant rated the inventory Robust Promote as it’s at excessive threat of performing badly.