106%+ returns, 97% win rate: A fresh list of AI-picked stock is out NOW
On Friday, Mizuho (NYSE:MFG) analysts increased the price target for Marqeta Inc. (NASDAQ:MQ) shares to $6.00, up from the previous $5.00, while maintaining an Outperform rating on the stock. The adjustment comes after Marqeta demonstrated a stronger than anticipated performance in the fourth quarter. The stock, currently trading at $4.25 with a market capitalization of $2.14 billion, has shown strong momentum with a 15.18% gain over the past week. According to InvestingPro analysis, the company appears slightly undervalued based on its Fair Value metrics.
The analysts observed that Marqeta’s third quarter was notably challenging, but recent developments suggest the company is regaining momentum. A significant part of the gross profit improvement in the fourth quarter, which was around four percentage points higher than expected, was attributed to a lower impact from regulatory challenges and the introduction of new programs, contributing approximately two percentage points. Additionally, Marqeta reaching an unforeseen milestone added about one percentage point, with higher-yielding use cases also providing a similar boost. The company maintains a robust gross profit margin of 69.4%, though InvestingPro data indicates analysts anticipate a sales decline in the current year. For deeper insights into Marqeta’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
Marqeta’s progress is seen as potentially just the start of a positive trend. While unwinding regulatory issues will require time, the trajectory is perceived to be shifting in a favorable direction.
In light of these developments, Mizuho analysts have updated their estimates for Marqeta. The revised price target of $6 reflects the analysts’ optimism regarding the company’s future performance and the steps it is taking to address recent challenges. The analysts’ commentary underscores the belief that despite the obstacles faced in the previous quarter, Marqeta is on a path to recovery.
In other recent news, Marqeta Inc. reported its fourth-quarter 2024 earnings with revenue reaching $136 million, surpassing the forecast of $132.31 million. The company met its earnings per share (EPS) forecast of -$0.05. Marqeta’s strong performance was driven by a 29% year-over-year growth in total processed volume, amounting to $80 billion. The company also launched a partnership with American Express (NYSE:AXP) and acquired TransactPay, which is expected to enhance its European market offerings. Looking ahead, Marqeta projects net revenue growth of 16-18% for 2025, with significant contributions expected from new programs. The company is targeting GAAP profitability by the end of 2026. Additionally, Marqeta’s leadership transition was announced, with Mike Miletic stepping in as Interim CEO following the departure of Simon Koloff.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.