Five things to watch in markets in the week ahead
Investing.com - DA Davidson lowered its price target on Repay (NASDAQ:RPAY) to $9.00 from $10.00 on Thursday, while maintaining a Buy rating on the payment processing company following mixed third-quarter results. The stock currently trades at $3.57, down over 52% year-to-date, suggesting significant upside potential to DA Davidson’s target.
The financial services firm noted that Repay reported revenue slightly above their forecast, but adjusted EBITDA came in below expectations for the quarter.
Following the results, Repay management reduced their financial guidance for fiscal 2025, prompting DA Davidson to take a more conservative approach to their forecasts.
Despite the trimmed outlook, DA Davidson expects more attractive growth for Repay in 2026, citing two key factors: the anniversary of three customer losses and anticipated benefits from increased political media spending during the 2026 mid-term elections.
The firm has also reduced its 2026 and 2027 forecasts for Repay in an effort to be more conservative in its outlook, while maintaining its Buy recommendation on the stock.
In other recent news, Repay Holdings Corp reported a notable earnings miss for the third quarter of 2025. The company recorded an actual earnings per share (EPS) of -$0.08, falling short of the projected $0.21, representing a negative surprise of 138.1%. However, Repay Holdings did achieve a revenue of $79.1 million, which exceeded expectations by 2.82%. This mixed financial performance highlights the company’s challenges in profitability despite better-than-expected revenue figures. These developments have raised concerns among investors regarding the company’s financial health. The earnings announcement has drawn attention from analysts and investors alike, focusing on the company’s ability to address its earnings shortfall. The financial community continues to monitor Repay Holdings for any strategic responses to improve its earnings performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.