Northland Securities analyst Michael Grondahl maintained a Buy rating on Moneygram International (MGI) today and set a price target of $5.50. The company’s shares opened today at $2.33.
Grondahl commented:
“We believe these efforts will gradually work over 2019 and MGI has lowered the cost structure, so when they return to growth it should be pretty beneficial. June quarter Adj. EBITDA was $54.3M, down only 9% y/y and Adj. EBITDA margins were up 80 bps y/y despite soft revenues. On the call, MGI noted that June was a softer month but July bounced back to the stronger trend of previous months. MGI called out U.S. outbound and U.S. domestic markets as slower than expected, but in July, ex U.S. markets, MGI grew transactions y/y which is a nice sign. The Ripple partnership went live earlier this week and 3Q is a learning quarter and in 4Q Ripple will begin to have a little effect with a recent settled transaction time of 1 minute 13 seconds to Mexico. Over a few years MGI expects more than $50M of Adj. EBITDA benefit from Ripple.”
According to TipRanks.com, Grondahl is a 5-star analyst with an average return of 16.5% and a 59.3% success rate. Grondahl covers the Financial sector, focusing on stocks such as Front Yard Residential Corporation, Altisource Portfolio Solutions SA, and Health Insurance Innovations.
Currently, the analyst consensus on Moneygram International is a Moderate Buy with an average price target of $5.50.
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The company has a one-year high of $6.84 and a one-year low of $1.33. Currently, Moneygram International has an average volume of 2.64M.
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MoneyGram International, Inc. is a global payment services company, which offers global money transfers, bill payment solutions and money orders. It operates through the following business segments: Global Funds Transfer and Financial Paper Products. The Global Funds Transfer segment provides money transfer services.
