KeyBanc analyst Alex Markgraff downgraded Marqeta Inc. (NASDAQ: MQ) from Overweight to Sector Weight.

The analyst comments: "The 3Q24 print was dominated by a substantial revision of FY24 revenue/gross profit guidance and an initial look at FY25 growth, which is now expected to be materially below the Company and Street estimates (KBCM gross profit growth previously at 25% y/y, now at 15% y/y). Despite the reduction in gross profit dollars anticipated in FY25, the Company maintained target adj. EBITDA dollars, suggesting incremental cost efforts are underway. The biggest driver of the guidance reduction is tied to a lengthening of program implementation timelines resulting from greater regulatory scrutiny at partner banks, while select customer in-sourcing is also a factor. As a result of a structurally lower growth rate in FY25 resulting in large part from external factors and incremental pressure from customer in-sourcing, we are downgrading MQ to SW."

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Shares of Marqeta Inc. closed at $5.95 yesterday.