UPDATE: Citi Starts Expensify Inc (EXFY) at Buy

Citi analyst Tyler Radke initiates coverage on Expensify Inc (NASDAQ: EXFY) with a Buy rating and a price target of $50.00.

The analyst comments "We are initiating on EXFY with a Buy/High Risk rating and $50 target price. We believe Expensify is at the early stages of helping the SMB market digitize their expense management process. We see a ~$11B market opportunity thru our bottoms-up math, with room for significant market share over time given first-mover advantage and differentiation via product-led growth. The introduction of an EXFY credit card in 2020 also offers some lucrative optionality in payments, which we think could help drive upside to top-line growth. While we have some questions on whether the company’s enviable operational/profitability efficiency will be sustainable longer-term, we think the rare combination of growth + profitability deserves a premium valuation. Our $50 TP equates to 18.1x 2023 EV/Revenue, a slight premium to peers on a growth-adjusted basis, which we believe is justified given the favorable market opportunity + strong profitability."

For an analyst ratings summary and ratings history on Expensify Inc click here. For more ratings news on Expensify Inc click here.

Shares of Expensify Inc closed at $36.90 yesterday.

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