JPMorgan Overweight $6 Price Target for Marqeta; January Downgrades Cut to $4.50
JPMorgan initiated coverage of Marqeta on February 17 with an Overweight rating and $6 price target, forecasting 16% Q4 gross profit growth—one point above Street estimates—and guiding mid-teens gross profit growth and EBITDA. January 8 downgrades trimmed Marqeta's target to $4.50, citing payment-processing competition and Cash App card transition risks.
1. JPMorgan Initiates Coverage with Overweight Rating
On February 17, JPMorgan launched coverage of Marqeta, assigning an Overweight rating and setting a $6 price target. The firm forecasts 16% gross profit growth in Q4—about one percentage point above current Street estimates—and expects the company to guide mid-teens gross profit growth along with solid EBITDA generation.
2. January Downgrades Lower Price Targets
On January 8, Mizuho downgraded Marqeta from Outperform to Neutral and cut its price target from $8 to $4.50, while Wolfe Research moved the stock from Outperform to Peerperform. Both firms cited intensifying payment-processing competition and risks associated with Cash App Card’s shift to Bancorp.
3. Growth Drivers Offset Processing Risks
Despite concerns over client diversification by Cash App, JPMorgan highlights expansion in European operations and growth in lending and buy-now-pay-later services as offsetting factors that should support Marqeta's revenue and earnings momentum.