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On Monday, Keefe, Bruyette & Woods analysts reiterated a Market Perform rating for Meta Financial (NASDAQ: NASDAQ:CASH (TSX:CASH)), maintaining their price target at $86.00. The decision follows a series of meetings with the company’s leadership, including CEO Brett Pharr, CFO Greg Sigrist, and Vice President Darby Shoenfeld.
During the meetings, the analysts highlighted Meta Financial’s strong positioning in the Banking as a Service (BaaS) sector. They noted the company’s extensive experience, scale, and range of product offerings, as well as its solid regulatory and compliance framework. These factors are seen as key strengths as the company seeks to expand into new, balance sheet-light business areas. InvestingPro data supports this view, with the company achieving a "GREAT" overall financial health score of 3.16 out of 5.
While the growth of Meta Financial’s traditional prepaid card business is slowing, the company is focusing on new opportunities. The company has demonstrated solid execution with revenue growth of 6.51% and an impressive one-year return of 46.84%. Management presented a detailed product roadmap aimed at capitalizing on these opportunities over the coming years. The analysts believe that the outlook for Meta Financial remains favorable, with the company poised to benefit from the rapidly growing BaaS market.Get access to 8 more exclusive InvestingPro Tips and comprehensive analysis in our Pro Research Report, helping you make more informed investment decisions.
Despite these positive aspects, the analysts chose to maintain their Market Perform rating. They cited the current trading value of the shares at 9.5 times their estimated earnings per share for fiscal year 2026 as a factor in their decision, which aligns with the stock’s current P/E ratio of 10.12x.
In other recent news, Pathward Financial Inc. reported impressive earnings for the second quarter of fiscal year 2025, surpassing analyst expectations. The company achieved earnings per share (EPS) of $3.11, which was higher than the projected $2.78, marking a 21% increase from the previous year. Revenue also exceeded forecasts, reaching $262.9 million compared to the expected $256.3 million. In light of these results, Pathward Financial has revised its fiscal year 2025 EPS guidance upward to a range of $7.4 to $7.8. The company attributes its strong performance to a strategic focus on renewable energy loans and a robust position in the tax services market. Notably, Pathward Financial’s net interest margin improved to 6.5% from 6.23% the previous year. Additionally, the company has been proactive in share repurchases, buying back approximately 576,000 shares during the quarter. Pathward Financial’s CFO, Greg Sigrist, emphasized the company’s focus on balance sheet optimization and its ability to maintain strong financial health amidst market fluctuations.
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