Strategic Analysis By Analyst: Diverse Outcomes For Fintech Stocks In Current Market Conditions

BMO Capital Markets analyst Rufus Hohn has started covering several fintech stocks.

In assessing market performance, analysts started covering Repay Holdings Corp (NASDAQ: RPAY) with a target price of $9, Remitly Global Inc (NASDAQ: RELY) with a target price of $25 , and Western Union Co (NYSE :WU). It costs 12 USD. AvidXchange Holdings Inc (NASDAQ: AVDX) has a price target of $11 and i3 Verticals Inc (NASDAQ: IIIV) has a price target of $24.

WU . The analyst believes that investors should expect further signs of continued earnings growth, especially after last year's easy recovery ends (i.e. during 2H24) . Although the C2C sector has benefited from Evolve 2025 initiatives, the analyst believes it is too early to accommodate sustained EBITDA/EPS growth.

Analysts estimate EPS of $1.74 for FY23, $1.70 for FY24, and $1.71 for FY2025.

PAY BACK . The analyst wrote that RPAY spending volume is highly discretionary and sees additional hurdles to underlying growth in FY24. However, the company's small size, low diversification rate, low liquidity and the potential benefit of its exposure to the refinancing of securities. This is always a concern.

Analysts expect earnings of $23, $23, $0.88 and $25, $0.96, $0.82, $0.90 and $1.01 respectively for the year.

Is approved . The analyst worries that investors will be wary of additional high-end investments and higher sequential marketing spending in the fourth quarter, and will closely monitor indicators that marketing investments are paying off, accelerating customer growth.

This estimates EPS at $0.14 for FY23, $0.45 for FY24, and $0.94 for FY25.

In an outperform rating, Hon launched Hamilton Insurance Group Ltd (NYSE: HG) with a price target of $18, Fleetcor Technologies Inc (NYSE: FLT) and Fiserv Inc (NYSE: FI) with a price target of 300 $. Target price: $152. .

FLT . According to the analyst, FLT is expected to benefit from the global digitalization of B2B payments and various vertical barriers identified to implement a successful M&A strategy.

The analyst forecasts core EPS of $16.97 for FY23, $20.91 for FY24 and $25.44 for FY25.

FI . Hone views the company's distribution scale as a key competitive advantage and expects organic growth to benefit from a higher-quality, higher-growth technology/software product mix with average revenue per user (ARPU).

Analysts see $23, $23, $8.75 and $25, $10.25 $7.49, $8.58 and $9.88.

HG . Analyst expects the company to utilize more than 50% of the portfolio created during the pandemic in 2020-2021, along with "sophisticated market/price power" and frequency/volume of insurance claims significantly lower.

Image via Fiserv

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