FSRV - FinServ Acquisition: Under The Radar And Undervalued E-Commerce FinTech
- FinServ Acquisition Corp. and Katapult recently agreed to a merger valued at ~$1 billion or ~6.6x 2022 EBITDA and only ~1.3x 2022 revenue.
- Katapult provides lease financing solutions for e-commerce transactions, targeting underserved nonprime consumers.
- Management provided bullish, yet achievable, financial targets through 2023, which places valuation at a very reasonable range.
- Given the SPAC structure, this name has remained below the radar and is relatively unknown, though the recent success of Affirm's IPO should give long-term investors enough reason to build a position in the name.
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FinServ Acquisition: Under The Radar And Undervalued E-Commerce FinTech