MoneyLion upgraded by Needham on growth outlook, sees 35% upside for shares

On Wednesday, MoneyLion Inc. (NYSE:ML), a company offering a range of personal finance products, received a positive outlook from Needham. The coverage was initiated with a Buy rating and a price target set at $90, signaling confidence in the company's growth potential.

The firm initiating the coverage highlighted MoneyLion's comprehensive suite that includes lending, banking, and investing services. Additionally, the company's embedded personal financial marketplace, which connects consumers with third-party offers, was noted for its capacity to extend MoneyLion's reach beyond its first-party products.

The optimism surrounding MoneyLion is partly due to the company's position in the digital lending and neobank sector, where it is expected to become a long-term winner. The financial firm also pointed out the steady improvement in MoneyLion's profitability, which could lead to an expansion of its multiple.

The price target of $90 is based on a 7.5x EV/EBITDA multiple of the firm's fiscal year 2025 estimate. This target suggests an approximate 35% upside from current levels, indicating a bullish stance on the company's financial prospects.

MoneyLion's business model, which offers a broad range of financial services and products, is seen as a key driver for its future success. The company's ability to match consumers with offers from an extensive partner network is also considered a significant factor in its comprehensive marketplace approach. With the financial firm's coverage initiation, MoneyLion's stock may attract further attention from investors seeking growth opportunities in the fintech sector.

As MoneyLion Inc. (NYSE:ML) garners a favorable outlook with a "Buy" rating and an ambitious price target of $90, current InvestingPro data and tips provide additional context for investors. The company's market capitalization stands at a robust $705.76M, reflecting its significant presence in the personal finance industry. Importantly, analysts predict that MoneyLion will be profitable this year, aligning with the financial firm's positive sentiment regarding the company's growth trajectory.

InvestingPro Tips suggest that MoneyLion's stock price has experienced large price upticks, with a 233.83% increase over the last six months and an impressive 311.0% return over the last year. This performance is indicative of the company's strong market momentum. Moreover, with a revenue growth of 24.27% in the last twelve months as of Q1 2023, MoneyLion showcases its ability to expand its financial footprint effectively.

Investors should note that the stock generally trades with high price volatility, which could mean significant price swings. This volatility is reflected in the 29.39% return over the last month, underscoring the potential for both risk and reward. For those looking to delve deeper into MoneyLion's financials and future prospects, InvestingPro offers additional tips beyond these insights. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/ML, and discover the full range of valuable tips available.

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