AvidXchange initiated with a Positive at Susquehanna

Susquehanna analyst James Friedman initiated coverage of AvidXchange with a Positive rating and $15 price target. AvidXchange has “a unique self-help story” as roughly half the volume that currently runs over the company’s rails is from checks and if they succeed in their effort to convert “even a modest percentage” of those checks to their ePay software and virtual cards, take rates should rise, revenues should grow, costs should decline and margins should expand “materially,” the analyst tells investors. It is underappreciated by the market that converting their check-based volume to their ePay software and virtual cards should lead revenue growth to accelerate and margins to expand beyond consensus, the analyst added.