Marqeta downgraded to Neutral from Overweight at JPMorgan

JPMorgan analyst Tien-tsin Huang downgraded Marqeta to Neutral from Overweight with a price target of $6, down from $9. The analyst likes the strategic value and long-term operational improvements being put in place at Marqeta, but feels it is time to move to the sidelines given trade-off of lower near-term growth with longer-term certainty due to stepped up renewals including Visa that surprised to the downside. While the Square renewal "overhang" is manageable, negative revisions to fiscal 2023 estimates weaken the case for investor optimism on renewal economics until it is done and timing is unclear, the analyst tells investors in a research note.