On Wednesday, a Craig-Hallum analyst maintained a Buy rating on shares of MoneyLion (NYSE:ML) with a price target of $105.00. The firm's position is based on expectations that the financial technology company will achieve a significant adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) by fiscal year 2025.
The analyst's commentary highlighted the rationale behind the price target, noting, "We are maintaining our $105 price target, which represents a 13x multiple on our FY25 Adj. EBITDA." This target multiple is notably higher than the average for comparable companies in the financial product marketplace, which trade at multiples ranging from 6 to 17 times their projected fiscal year 2025 adjusted EBITDA.
The price target of $105 also takes into account the analyst's belief in the company's potential to reach a $37.50 target price, which would subsequently trigger a contingent value rights (CVR) payment. This aspect of the valuation reflects additional confidence in MoneyLion's future performance and the anticipated milestones the company could achieve.
MoneyLion's stock rating and price target affirmation come at a time when the company is poised to outperform its peers in the financial sector. The analyst's projection is based on a premium multiple that suggests a robust growth trajectory for MoneyLion's adjusted EBITDA.
The Craig-Hallum analyst's statements underscore a positive outlook for MoneyLion, suggesting that the company is on track to deliver on its financial targets and provide value to its shareholders. The maintained price target of $105 reflects a comprehensive analysis of the company's financial prospects and market comparisons.
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