Priority Technology: Undervalued Fintech Poised For Upside Amid Strong Growth And Peer Discount

Matthew J. Smith
9 Followers
(16min)

Summary

  • Priority Technology is undervalued, with strong revenue and EBITDA growth, expanding high-margin segments, and improving leverage, and yet it trades below peer multiples.
  • PRTH's integrated fintech platform and recurring revenue base position it well for secular growth in digital payments, embedded finance, and B2B automation.
  • Management is focused on scaling high-margin businesses, cross-selling, cloud integration, and deleveraging, supporting margin expansion and future valuation upside.
  • Risks include leverage, competition, and execution, but with continued growth and debt reduction, a 40–50% stock upside is realistic over 12–18 months.

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Executive Summary

Priority Technology's (NASDAQ:PRTH) stock appears undervalued given its strong growth outlook. In Q1 2025, the company grew revenue 9% YoY to $224.6 million and adjusted EBITDA by 11%, driven by robust demand for its payments

This article was written by

9 Followers
I hold a PhD in Machine Learning focused on Economics and Finance and have academic affiliations with IESE Business School, ESADE Business School, and the Barcelona Supercomputing Center. My professional experience includes working at Deloitte Financial Advisory, specializing in banking and mergers & acquisitions. My interests broadly span machine learning and generative AI applications in finance and economics, and I am proficient in Python, R, and SQL.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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