Priority Technology stock gains as TD Cowen reiterates Buy rating

Investing.com - Priority Technology Holdings Inc. (NASDAQ:PRTH) maintained its Buy rating from TD Cowen, which reiterated its $11.00 price target on the payment technology company. According to InvestingPro data, analysts’ targets range from $10 to $16, with the stock currently trading at $7.71, suggesting potential upside. The company’s strong financial health is reflected in its 12.9% revenue growth over the last twelve months.

TD Cowen highlighted Priority’s recent acquisition of Boom Commerce for approximately $103 million including earnouts, representing about 6.4 times the annualized incremental FY25 EBITDA contribution of approximately $16 million.

The firm noted that Priority also secured a $50 million delayed draw term loan facility with Värde Partners to support residual/receivable financing, which TD Cowen characterized as a positive strategic move to optimize capital structure.

According to TD Cowen, Boom Commerce is a high-growth reseller of Priority Technology’s services and among its larger partners, with the transaction expected to be meaningfully accretive to financial performance for FY26.

The acquisition broadens Priority’s direct sales force while reducing execution risk due to Boom’s familiarity with both Passport and Plastiq platforms, and further diversifies exposure across low-risk businesses to mitigate concentration risk.

In other recent news, Priority Technology Holdings reported strong financial results for the second quarter of 2025, significantly surpassing Wall Street expectations. The company achieved an earnings per share of $0.26, compared to the forecasted $0.17, marking a notable 52.94% surprise. Revenue also slightly exceeded projections, reaching $239.8 million against an anticipated $239.63 million. In addition to these earnings results, Priority Technology Holdings completed the acquisition of certain assets from Boom Commerce and secured a new $50 million residual financing credit facility. This acquisition includes revenue agreements and customer relationships, with Boom’s CEO and COO joining Priority as part of the deal. Furthermore, TD Cowen raised its price target for Priority Technology Holdings to $11 from $10, maintaining a Buy rating. The firm cited Priority’s solid second quarter performance as a reason for this adjustment. These developments reflect Priority’s effective execution amid stable market conditions.

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