Repay stock rating reiterated at Buy by Benchmark, sees rebound ahead

Investing.com - Benchmark has reiterated its Buy rating and $8.00 price target on Repay Holdings (NASDAQ:RPAY), maintaining its positive outlook despite recent challenges for the payment processing solutions provider. According to InvestingPro data, the stock appears undervalued, trading at just 0.76 times book value, with analysts setting targets ranging from $5 to $12.

The research firm acknowledged that Repay investors have experienced significant turbulence over recent quarters, with the fintech stock’s price dropping into what it describes as "deep-value territory."

According to Benchmark, Repay’s operating performance has been negatively impacted by client attrition resulting from industry consolidation and companies bringing payment processing in-house, along with reduced payment volumes in certain market segments.

The firm also noted that "lumpy political media contributions" have created confusion in Repay’s gross profit reporting, further complicating the company’s financial picture.

Despite these challenges, Benchmark believes Repay’s second-quarter 2025 report, released on August 11, demonstrates the company has been establishing foundations for a recovery that "investors are only beginning to appreciate."

In other recent news, Repay Holdings Corp reported its second-quarter 2025 earnings, revealing a notable shortfall in earnings per share (EPS) expectations. The company posted an EPS of -$1.15, significantly below the forecasted $0.20. However, Repay’s revenue slightly exceeded projections, reaching $75.62 million compared to the anticipated $73.57 million. Despite the earnings miss, DA Davidson maintained a Buy rating on Repay, although it adjusted the stock price target from $12 to $10 following the earnings report. The firm highlighted that the company’s revenue and adjusted EBITDA surpassed its forecasts. In a separate analysis, DA Davidson had previously upheld a $12 price target and Buy rating based on Repay’s strong second-quarter performance. These developments reflect varied analyst perspectives on Repay’s financial standing and future prospects.

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