According To Loop Capital, This Undervalued Fintech Stock Has The Potential To Become A Market Leader And Increase By Almost 20%.

According to Loop Capital, the market is not paying enough attention to Triumph Financial, a "new fintech leader in payments."

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With a buy rating and a $76 price target, the company started following Triumph. A 17.5% increase from Tuesday's close is implied by that aim.

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In a client note on Thursday, analyst Hal Goetsch stated, "Today we view the shares of TFIN as being graded like it's an ordinary small bank as opposed [to] a highly profitable emerging fintech platform with highly profitable and defensible factoring operations that are currently funding startup losses in TriumphPay." He added that the company is a "rare breakthrough."

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Goetsch claimed that because of its expertise in transportation factoring, which is a method for truckers to be paid for their services, the company could profit from a fragmented U.S. trucking market in terms of payments.

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This, in addition to its newly developed open-loop payment technology, TriumphPay, according to Goetsch, distinguishes the business. To facilitate payments, TriumphPay links brokers, factoring businesses, and carriers in the trucking sector.

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"By providing brokers with supply chain financing, it enables them to pay drivers more quickly. TriumphPay offers capabilities to speed up a traditional labor- and time-intensive procedure while decreasing fraud and improving back-office efficiency, according to Goetsch.

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Undoubtedly, Goetsch thinks the business won't start to turn a profit until 2024 because 2023 will see a decline in freight demand.