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Marqeta (NASDAQ:MQ) stock gained 4.9% in Monday premarket trading after Bank of America upgraded the card issuing platform to Buy from Neutral as analyst Cassie Chan sees near-term visibility and long-term opportunities that could result in favorable top-line growth over the medium term.
“Based on our analysis on some of MQ’s key end-market verticals, as well as theburgeoning credit opportunity, we believe MQ can grow top line 20%+ in the medium-term,” the sell-side analyst wrote in a note.
She noted that 75% of total processing volume has been renewed between Q2 2022 and Q3 2023, thanks to Marqeta’s (MQ) renewed go-to market strategy. There’s opportunity for MQ to see about 21% incremental TPV growth in 2024, she contended, assuming just 1% penetration and 5% growth in the U.S. credit market this year.
Chan did cite ongoing client concentration, chiefly Block (SQ), as well as exposure to volatile, high-growth end-markets as key risks to her outlook on MQ.
Her Buy rating diverges from the SA Quant system rating of Hold and agrees with the average Wall Street analyst rating of Buy.
