Redemption shares soar 43% on strong results and constructive outlook

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To reimburse (NASDAQ:RPAY) Inventory climbed 43.4% on Thursday after the payment technology company’s third-quarter results were slightly above Street’s estimates and it reaffirmed its guidance for the financial year.

DA Davidson maintained its buy rating on Repay (RPAY) and has set a revised price target of $18, implying upside potential of around 311% through its latest close.

“With strong third-quarter results and constructive early commentary on 2023, we believe the equity selloff has been well overdone,” analyst Peter Heckmann said. Redemption Actions (RPAY) decreased by 68% YTD.

Truist reiterated its Buy rating and held its value at $9.50 PT (~117% upside potential). “We believe investors were disappointed after the second quarter by slower-than-expected personal loan growth, and recent weakness in equities apparently reflects fears of auto-growth. However, the forecast implies that the decline in the third quarter has not worsened, which we find encouraging,” said analyst Andrew Jeffrey.

Truist raised its C23/C24 revenue/EBITDA estimates to $295M/$130M and $334M/$150M (from $288M/$127M and $330M/$148M).

Morgan Stanley cut its PT to $8.50 from $13 (~83% potential upside) and maintained its Equal Weight rating, while Credit Suisse lowered its PT to $8.50 from $11 (94% potential upside) and reiterated its Neutral rating.

While Wall Street analysts are on average bullish on Refund (RPAY), SA Quant assessed the Strong Sell stock as it is at high risk of performing poorly.

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