Repay inventory soars 43% on robust outcomes, constructive outlook

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

D.A. Davidson maintained its Purchase score on Repay (RPAY) and set a revised worth 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 score and maintained its $9.50 PT (~117% potential upside). “We predict traders have been dissatisfied, following Q2, by slower-than-expected private loans progress, and up to date inventory weak spot seemingly displays auto rev progress fears. Nonetheless, steerage 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 lower its PT to $8 from $13 (~83% potential upside) and maintained its Equal Weight score, whereas Credit score Suisse lowered its PT to $8.50 from $11 (94% potential upside) and reiterated its Impartial score.

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