Repay Holdings initiated with a Market Perform at BMO Capital

BMO Capital analyst Rufus Hone initiated coverage of Repay Holdings with a Market Perform rating and $9 price target. The company’s smaller scale, lower degree of diversification, lower liquidity, and potential earnings impact from refinancing its convertible note warrants a more conservative take on valuation, the analyst tells investors in a research note. The firm, however, sees incremental tailwinds for Repay’s gross profit growth heading into 2024.