On Nov 06, major Wall Street analysts update their ratings for $Marqeta (MQ.US)$, with price targets ranging from $7 to $7.
Citi analyst Ashwin Shirvaikar maintains with a buy rating, and adjusts the target price from $8 to $7.
Mizuho Securities analyst Dan Dolev maintains with a buy rating.
SIG analyst James Friedman maintains with a buy rating, and adjusts the target price from $9 to $7.
Monness analyst Gustavo Gala downgrades to a hold rating.
Furthermore, according to the comprehensive report, the opinions of $Marqeta (MQ.US)$'s main analysts recently are as follows:
Marqeta reported mixed results for Q3 and reduced its growth forecast for Q4 and fiscal year 2025, primarily due to extended onboarding periods stemming from increased regulatory examination and the associated risk appetites of sponsor banks. Estimates have been adjusted in light of these developments.
Marqeta's recent performance has been underwhelming post the renewal event with Block. This has led to the anticipation that the company's valuation might align more closely with its cash value following after-hours trading. Despite this, it is anticipated that Marqeta will have to demonstrate its capabilities into 2025 due to recent challenges in execution.
Marqeta's recent performance indicated a modest shortfall in Q3 gross profit growth, although it exceeded expectations for adjusted EBITDA due to stringent operational discipline. Nonetheless, the company significantly reduced its forecast, attributing this revision to increased oversight from the banking sector, which has postponed the onboarding of new clients, and a reduction in value-added services from current clients. Additionally, it was observed that several of Marqeta's advanced fintech clients have chosen to internalize parts of their program management and banking relationships.
Marqeta's third-quarter performance was notably below expectations, marking a challenging period in its brief tenure on the public market. The unexpected shift in the regulatory landscape led to a considerable revision of guidance and introduced uncertainty for the year 2025. Despite reduced projections, the outlook for Marqeta's extended-term path remains positive.
The Q3 earnings report for Marqeta was overshadowed by a significant reduction in the revenue and gross profit forecast for fiscal 2024, alongside a preliminary forecast for fiscal 2025 growth that is anticipated to be considerably under both the company's and analysts' previous estimates. The expected materially lower growth rate for fiscal 2025 is due to a combination of external factors and added challenges stemming from customer in-sourcing. The perspective shared is that it is not necessary to hold a bullish stance on the stock until the regulatory and implementation challenges, as well as the business model issues, are addressed.
Here are the latest investment ratings and price targets for $Marqeta (MQ.US)$ from 4 analysts:
Note:
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