On Wednesday, H.C. Wainwright maintained a Buy rating on FlexShopper (NASDAQ:FPAY) and increased the price target to $2.50 from the previous $2.00. The adjustment follows FlexShopper's strong fourth-quarter performance in 2023 and optimistic management discussions, prompting the firm to revise its 2024 financial estimates.
The firm now projects FlexShopper's 2024 revenue to reach $155.0 million, a rise from the earlier forecast of $152.9 million. This increase is attributed to growing origination volumes. Additionally, the adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) estimate for the full year of 2024 has been raised to $28.0 million from the prior estimate of $26.3 million.
H.C. Wainwright has also taken this opportunity to present its preliminary 2025 revenue and adjusted EBITDA estimates for FlexShopper. The firm anticipates that the company will generate revenue of $173.0 million and an adjusted EBITDA of $33.0 million in 2025. The expected revenue growth is driven by new product sales through FlexShopper's online platform and the potential success from the company's recent new store openings.
The revised financial outlook and subsequent price target elevation to $2.50 reflect the firm's confidence in FlexShopper's revenue and adjusted EBITDA growth. The positive adjustments are based on the company's better-than-anticipated operating results from the last quarter of 2023 and the favorable outlook presented by the management.
InvestingPro Insights
Following the upbeat assessment by H.C. Wainwright, real-time data from InvestingPro offers additional insights into FlexShopper's financial health and market performance. The company's market capitalization currently stands at $25.01 million, indicating its position in the market. Despite a challenging environment, FlexShopper's revenue has grown by 3.47% over the last twelve months as of Q4 2023, with a significant quarterly surge of 41.38% in Q4 2023. This growth trajectory aligns with the optimism expressed by H.C. Wainwright's projections.
InvestingPro Tips suggest that FlexShopper faces headwinds, as analysts do not expect profitability this year, and the stock has experienced high price volatility. The stock's price has notably declined by over 30% in the last three months. Nevertheless, the company's liquid assets surpass short-term obligations, providing some financial stability. For readers looking to delve deeper into FlexShopper's prospects and risks, there are additional InvestingPro Tips available at https://www.investing.com/pro/FPAY. By using the coupon code PRONEWS24, readers can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking more insights to inform their investment decisions.
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