Repay Holdings Corporation (NASDAQ:RPAY) shares are trading lower Tuesday after multiple firms reduced their price targets on the stock.
What To Know: Canaccord Genuity analyst Joseph Vafi noted that Repay has strong free cash flow (FCF) conversion and a rich margin structure. However, the company is facing growth challenges, he added.
The company is seeing headwinds from the runoff of political ad spending after the 2024 election cycle and client losses due to M&A, he explained.
One major customer decided to take payments in-house, which further affected Repay’s revenue outlook. Without these setbacks, Vafi expects Repay to achieve mid-single-digit revenue growth this year.
Despite these issues, Vafi highlighted the company’s potential attractiveness as an acquisition …
