HC Wainwright & Co. Keeps Buy Recommendation on FlexShopper Despite 352.85% Upside Potential

HC Wainwright & Co. maintains a Buy recommendation for FlexShopper (FPAY), with a projected annual revenue of 159MM and an EPS of -0.02. Analysts forecast an average price target of $2.55/share, a 352.85% increase from its latest closing price. The average portfolio weight of funds dedicated to FPAY is 0.07%, an increase of 34.05%. Total shares owned by institutions decreased by 0.42% to 3,629K shares.

H.C. Wainwright has significantly reduced its price target for FlexShopper (NASDAQ: FPAY) to $0.50 from $2.50, despite maintaining a Buy rating. The stock has declined by 67% year-to-date and currently trades below its Fair Value, despite a high gross profit margin of 85%. This move comes following significant leadership departures and financial challenges at FlexShopper.

The company has faced substantial leadership changes, with the resignation of three board members and the termination of President and Chief Operating Officer John Davies, following the August termination of CEO Russ Heiser. North Country Capital LLC has been engaged for interim management and restructuring services. FlexShopper has also received a Notice of Default, Acceleration of Obligations and Termination of Servicer, requiring the immediate payment of approximately $164.5 million in principal, along with additional interest and fees totaling approximately $3.5 million.

The notice prevents additional loans under the Waterfall Credit Agreement, effectively halting the company’s ability to originate new loans. Despite these challenges, H.C. Wainwright maintains its Buy rating, citing considerable value in the company’s technology assets, intellectual property, and merchant relationships.

In other recent news, FlexShopper received a deficiency letter from Nasdaq, indicating that its common stock had closed below the $1.00 per share minimum bid price requirement for 30 consecutive business days. The company has until March 17, 2026, to regain compliance. FlexShopper has also extended its forbearance period under its credit agreement to September 3, 2025, unless further defaults occur.

Analysts forecast an average price target of $2.55/share, a 352.85% increase from its latest closing price. The average portfolio weight of funds dedicated to FPAY is 0.07%, an increase of 34.05%. Total shares owned by institutions decreased by 0.42% to 3,629K shares.