UPDATE: Mizuho Securities Starts Marqeta Inc. (MQ) at Neutral
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(Updated - June 24, 2021 4:03 PM EDT)
Mizuho Securities analyst Dan Dolev initiates coverage on Marqeta Inc. (NASDAQ: MQ) with a Neutral rating and a price target of $25.00.
The analyst commented, "Initiate at Neutral; we're cautious. We believe MQ's disruption to Issuer Processing is what SQ was to Merchant Acquiring. But for now, we see limited upside. We worry that SQ accounts for 80-85% of revenue ex-network fees, which may be higher than thought. We are also concerned that ex-V/MA fees the non-SQ business has likely seen no growth. MQ's near-complete reliance on the Durbin small-bank loophole, and risk of competitive products from Stripe are additional worries. We see ample medium-term opportunities like disrupting the US credit processing market, which TSYS/GPN dominate. Finally, MQ's valuation is rich. We assign a 28x EV/GP multiple to reach our $25PT; ~15% potential downside."
Shares of Marqeta Inc. closed at $29.25 yesterday.
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