Wells Fargo (NYSE:WFC) initiated Equal-Weight coverage of Marqeta Inc (NASDAQ:MQ), the global card issuing platform provider, today. The bank set a one-year price target averaging at $7.02, with forecasts ranging from $4.04 to $9.66, signaling a potential upside of 39.24% from Marqeta's closing price of $5.04.
The Oakland, California-based company is projected to generate annual revenue of $977MM, marking an increase of 15.83%. However, its non-GAAP EPS is projected at -0.34. The company has gained traction among investors, with 458 funds or institutions currently holding positions in the company, representing a 2.23% increase from last quarter.
The average portfolio weight for Marqeta has risen by 1.67% to reach 0.41%, reflecting growing interest in the stock. This trend is further supported by a bullish put/call ratio of 0.42. Despite this, institutional shares ownership has seen a slight decline, decreasing by 2.82% to 338,504K shares recently.
Notable shareholders include FAGAX which increased its stake in Marqeta by 20.65%, and HMI Capital Management which reduced its holdings by 25.08%. Other significant stakeholders include VTSMX, NAESX, and Visa (NYSE:V).
Operating in 36 countries, Marqeta democratizes access to card issuing technology.
InvestingPro Insights
Our InvestingPro data and tips provide some additional insights into Marqeta's financial health and future prospects. The company has a market cap of $2740M and a negative P/E ratio of -13.60, indicating it is currently unprofitable. Over the last twelve months up to Q2 2023, the company has seen a revenue growth of 31.92%, although this growth has been slowing down recently.
From our InvestingPro Tips, we note that the management has been aggressively buying back shares, which could be a positive signal about the company’s future. On the other hand, the stock is in oversold territory according to the Relative Strength Index (RSI), suggesting that it may be undervalued at this time.
InvestingPro offers over a dozen more tips for Marqeta, including insights into the company's profitability, stock price performance, and dividend payments. For more detailed analysis and tips, consider exploring the InvestingPro platform.
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