Deutsche sees catalysts for Marqeta, including Square renewal

Deutsche Bank believes Marqeta (MQ) has “regained its footing and its outlook is bright with several catalysts on the horizon.” Demand for the company’s services has accelerated following a slowdown in fiscal 2022, and improvement in bookings will begin to reflect positively in numbers in upcoming quarters with a positive inflection in gross profit growth, the analyst tells investors in a research note. The firm finds it likely that the Square (SQ) renewal will be completed in the coming months and it sees this as a positive near-term catalyst given that the renewal deal will be beneficial to both parties. Deutsche keeps a Buy rating on Marqeta with a $7 price target.