Marqeta rallies 18% after Cash App contract extension with Block

Marqeta

09/08/2023 15:57

** Shares of Marqeta Inc  MQ.O  jumping 18.2% to $5.87 on
Weds, hit highest since Feb 16, after co extends contract with
Block Inc's  SQ.N  Cash App
    ** MQ on course for biggest one-day pct gain since May 2022
    ** Payments co late Tues said it signed 4-yr extension
effective July 1, 2023 through June of 2027
    ** Berenberg upgrades MQ to "buy" from "hold", saying
contract extension removes a "significant overhang" on the stock
    ** Berenberg raises its PT by $3 to $8, saying MQ "will now
be able to establish a new baseline from which to grow during
the next few years"
    ** MQ also reported Q2 net loss of ~$59 mln, up from ~$45
mln in yr-ago period, though net revenue increased 24% yr/yr to
$231 mln, topping Refinitiv consensus est. of $219.3 mln
    ** Avg rating among 18 analysts covering MQ is "buy" and
median PT is $7 - Refinitiv
    ** With move on the session, stock down ~5% YTD and has lost
roughly half its value over the past 12 months

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))