Marqeta, Inc MQ clocked a 53% revenue growth in the second quarter of FY22 to $187 million, beating the consensus of $179.8 million. EPS loss of $(0.08) beat the consensus loss of $(0.10).
Barclays analyst Ramsey El-Assal reiterated an Overweight and price target of $19. While the 2H22 guide shows caution regarding a potentially softer Fintech Industry backdrop, MQ's vertical diversity should help ensure ~40%+ revenue growth in F22, Ramsey expects.
Separately, an unexpected (and slow) CEO transition may affect the share prices, but his thesis remains intact.
KeyBanc analyst Josh Beck reiterated an Overweight and raised the price target from $11 to $12. He acknowledged the Q2 beat, CEO change, and cautious guidance.
Beck lifted the '22 revenue estimate while maintaining his below-Street 2023E reflecting potential take rate contract renegotiation compression. The price target reflects increased visibility into '22 top-line prospects and margin progress.
Mizuho analyst Dan Dolev reiterated a Buy and price target of $12. Following a turbulent week, which included a knee-jerk 30% down move due to fear of losing Block, Inc SQ volumes following confusing commentary by Fidelity National Information Services, Inc FIS, he noted that 2Q results should offer a sigh of relief.
While results were strong, especially on revenue, take rates and adj. EBITDA, a somewhat softer than hoped 3Q guide is unlikely to be met with a cheer, Dolev added. He continues to await the much-anticipated SQ renegotiation, which remains the stock's #1, #2, and #3 overhangs.
Citi analyst Ashwin Shirvaikar reiterated a Buy. He acknowledged that few factors could weigh on MQ stock near-term despite solid fundamentals. He remained focused on the long-term opportunity.
Price Action: MQ shares traded lower by 26.20% at $8.16 on the last check Thursday.
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