Shares of the provider of technological solutions for the financial sector Marqeta Inc. (MQ), on Monday, August 1, rose by almost 5% even against some decline in the S&P 500 index. The reason was the update of the target price from one of the Wall Street analysts. Marqeta supplies solutions for payment services: technologies for creating plastic cards and managing payments.
The company’s services by significant financial and IT companies, such as Block, Uber, DootDash, and Klarna. Thanks to Marqeta’s developments, its customers receive improved protection from fraudsters by minimizing the likelihood of sending money to unauthorized users. On Monday, August 1, KeyBanc analysts updated the target price of Marqeta shares to $11 while maintaining the “above market” recommendation. However, the experts did not accompany their decision with an explanation. Analysts are probably generally optimistic about the market prospects of Marqeta, which is rapidly expanding its customer base.
It should note that Marqeta cooperates with several large companies. Still, some investors are alarmed by the high share of the Block payment service in the entire revenue structure of the company. Against this background, the positive news was the closer cooperation announced two months ago by Marqeta with another financial technology company — Klarna, which offers installment payment services. Its customer base is about 150 million users, about 25 million in the United States. For Marqeta, the Klarna installment service is a significant partner that can provide a sizeable gross volume of payments. The installment sales market is overgrowing. Therefore, for Marqeta, entering this direction through a partnership with a strong player can be a positive signal.