RPAY Should I Buy

As previously reported, Stephens downgraded Repay Holdings to Equal Weight from Overweight with a price target of $3.75, down from $7. Despite a pre-announced quarter that was in-line to slightly better than expectations, the firm believes that shares are no longer trading on fundamentals, but \"two binary outcomes,\" namely the continuation as an independent public company with the closing of the Kubra acquisition, or an acquisition in excess of the rejected price of $4.80 from either Forager or a competing bid, to which it assigns a lower probability. While the Kubra acquisition \"makes sense strategically,\" the firm believes shares could face downward pressure from selling shareholders opposing the deal, with incremental investors taking a \"wait and see\" approach.