Priority Technology initiated with a Buy at Lake Street

Lake Street analyst Jacob Stephan initiated coverage of Priority Technology with a Buy rating and $7 price target. Shares are down 30% since the start of 2022 and have come under pressure due to the broader macro concerns, notes the firm, which thinks part of the reason shares trade at a discount to the comp group is because Priority has been grouped in with the broader SPAC market despite its warrants expiring in a month. The firm sees this valuation gap closing as investors better appreciate “the attractive growth profile,” see the free cash flow generation and progress de-levering the balance sheet and thinks the current valuation “offers a relatively high floor on shares,” the analyst tells investors.