PRTH Stock Forecast & Price Target

Priority Technology Holdings Inc. is poised for a positive financial outlook, with projections indicating revenue growth of 7.5%, 13.8%, and 17.3% across its SMB, B2B, and Enterprise segments, respectively, for 2025, coupled with adjusted gross margins of 22.0%, 29.0%, and 93.5%. The company has successfully aligned its debt levels with industry peers while significantly enhancing its profitability outlook, which supports a valuation multiple more consistent with competitors. Additionally, Priority has demonstrated notable advancements in its B2B and Enterprise segments, providing a clearer path for strong future growth.

Priority Technology Holdings Inc has been experiencing downward pressure on its stock, evidenced by a 9% decline following Q1 report, despite earnings aligning with consensus expectations. The financial outlook is negatively impacted by a slower growth projection for the SMB Payments segment, which is the highest revenue-generating area, and a corresponding reduction in EBITDA margins. Additionally, revisions for revenue estimates in 2025 and 2026 have been decreased, forecasting $0.65 and $1.00 respectively, alongside lowered EBITDA projections to $223 million and $257 million for those years.