MoneyLion rises after Needham initiates coverage with 'buy'

Moneylion

03/04/2024 15:14

** Shares of fintech firm MoneyLion  ML.N  rise as much as
4.3%, last up 2% at $68.47
    ** Needham initiates coverage with "buy" rating and PT of
$90, a 34.1% upside on the last close
    ** Brokerage says that ML profitability is steadily
improving, which should help shares move higher and also support
multiple expansions
    ** Needham expects ML to report GAAP profitability starting
in Q3 2024
    ** Rapid growth of its enterprise business, which covers
lending, credit monitoring, credit cards, and insurance, has
diversified ML's revenue base - brokerage 
    ** Discounted valuation provides a favorable risk-reward for
small-cap investors given the company's growth and improving
profitability - Needham 
    ** All four brokerages rate the stock "buy" or higher; their
median PT is $80 - LSEG data
    ** As of last close, ML shares up 7% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))