Marqeta (MQ) Rating Boosted to Strong Buy: Analyst Mark Palmer Optimistic

Berenberg's Mark Palmer upgraded their rating on Marqeta (NASDAQ: MQ) from Hold to Strong Buy on August 9, 2023. The analyst also raised their price target by 60% from $5 to $8.

The upgrade came on the heels of Marqeta's second-quarter 2023 earnings announcement, but it was another development that caught Palmer's attention. Marqeta signed a four-year extension with Block to continue powering the popular Cash App card product. The extended deal, effective from July 2023 to June 2027, was seen as a positive move for Marqeta.

Palmer noted that although the near-term operating performance of Marqeta will reflect the economics of the Cash App renewal, which were reduced compared to the prior arrangement, the company now has a new baseline from which to grow in the coming years. This deal removes a significant overhang on the stock, according to the analyst.

Currently, 83.3% of top-rated analysts recommend Marqeta as a Strong Buy or Buy, while 16.7% see it as a Hold. There are no analysts who recommend selling the stock.

Marqeta's stock has seen a significant decline of 54.5% year-over-year, trailing behind the performance of the S&P 500, which is down 7.9% during the same period. However, with the recent rating upgrade and positive outlook from analysts, investors may find renewed confidence in the company's prospects.

Analyzing Mark Palmer's track record, WallStreetZen ranks them in the top 18% out of 4,293 Wall Street analysts. Palmer has an average return of 5.6% and a win rate of 48.4%. They specialize in the Financial Services and Industrials sectors, among others.

Marqeta Incorporated, headquartered in Oakland, CA, offers digital payment technology solutions. The company serves various industries, including digital payment, online travel, small business lending, insurance, expense management, media and ad agencies, and crypto cards. As of December 31, 2021, Marqeta had approximately 200 customers.

Want to get in touch? Email us at news@wallstreetzen.com.

WallStreetZen and Don Francis do not hold any positions in the companies mentioned in this article. The information and statistics provided herein are presented for general informational purposes only and may not be accurate, complete, or up-to-date. It should not be interpreted as a recommendation to buy or sell any stocks and should not be solely relied upon for making investment decisions. It does not take into account your financial situation or risk profile. All investors should conduct their own investment due diligence before buying a stock. WallStreetZen expressly disclaims any liability for the accuracy, reliability, or completeness of the analysts' information, price targets, ratings, or opinions.