B.Riley cuts MoneyLion stock rating to neutral, target to $90

Published 26/02/2025, 07:06
B.Riley cuts MoneyLion stock rating to neutral, target to $90

On Wednesday, B.Riley analysts downgraded MoneyLion Inc. (NYSE:ML) stock from Buy to Neutral and lowered the price target to $90 from $133. The revision followed MoneyLion’s announcement of its fourth-quarter earnings, which the analysts noted had a solid performance. According to InvestingPro data, MoneyLion’s stock, currently trading at $85.96, appears undervalued based on its Fair Value analysis, despite showing high volatility with a beta of 3.06. The company’s revenue for the quarter was $158.6 million, surpassing B.Riley’s forecast by over $8 million. Adjusted EBITDA also slightly exceeded expectations, coming in at $25.6 million.

The analysts highlighted MoneyLion’s year-over-year revenue acceleration, which reached 40% growth. This increase was seen as a key accomplishment for the quarter. Additionally, enterprise revenue saw a significant uptick, accelerating to $61 million, which represents an 81% growth compared to the previous year.

MoneyLion’s overall performance in 2024 was characterized by robust growth. The company increased its revenue by 29%, added 6.4 million new customers, and achieved GAAP net income positive results. The analysts observed that MoneyLion increased its marketing spend and other costs to invest in growth, a move they believe will yield further growth dividends in the future. The company maintains strong liquidity with a current ratio of 6.33, while delivering impressive returns with a 65% stock price appreciation over the past year. For detailed analysis and comprehensive valuation metrics, investors can access MoneyLion’s full research report on InvestingPro.

The analysts’ commentary reflected on the company’s strategic spending, suggesting that MoneyLion’s increased investment in marketing and other areas is expected to support continued expansion and contribute to future financial success.

In other recent news, MoneyLion has received attention from analysts at Craig-Hallum, who maintained a Buy rating on the company with a price target of $105. This decision is based on expectations that MoneyLion will achieve significant adjusted EBITDA by fiscal year 2025. The analyst highlighted that the $105 price target represents a 13x multiple on the projected FY25 adjusted EBITDA, which is higher than the industry average. Additionally, the analysis includes a potential $37.50 target price that could trigger a contingent value rights payment, indicating confidence in MoneyLion’s future performance. The reaffirmation of the stock rating and price target suggests that MoneyLion is expected to outperform its peers in the financial sector. The Craig-Hallum analyst emphasized a positive outlook, projecting a robust growth trajectory for the company’s adjusted EBITDA. These developments reflect a detailed analysis of MoneyLion’s financial prospects and market positioning.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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