Priority Technoilogy Holdings Inc. (PRTH) PT Raised to $13 at Lake Street Capital Markets

Lake Street Capital Markets analyst Jacob Stephen raised the price target on Priority Technoilogy Holdings Inc. (NASDAQ: PRTH) to $13.00 (from $8.00) while maintaining a Buy rating.

The analyst comments "What Happened? – Priority announced the full redemption of its remaining preferred shares and accrued dividends for $116M, financed through an increase in its term debt due May 2031. This follows the partial redemption completed in May 2024 in conjunction with the refinance of its term debt. Our Take – The simplification of Priority’s capital structure removes an overhang for investors and should prove to be a catalyst for shares. With the balance sheet tidied up, we expect the Company will use its increased cash flow to de-lever along with the natural de-levering properties of EBITDA growth. Despite the recent positive price action, the stock remains discounted at 6.8x 2025 EBITDA vs. the peer group of 10%+ EBITDA growth payment processors at 12.5x. We would also note the recent acquisition of peer Nuvei at 11.4x NTM EBITDA implies a premium Priority’s current valuation of 7.1x. We see this valuation gap closing as investors realize the progress and recurring revenue growth potential in the business. In our view, shares present an attractive risk/reward setup. We are reiterating our Buy rating and raising our price target to $13."

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