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On Thursday, BMO Capital analysts reiterated their Outperform rating on Remitly Global Inc (NASDAQ: RELY) and maintained a price target of $30.00. The analysts highlighted Wise (LON:WISEa)’s plan to move its primary listing to the U.S. from London as a potential positive catalyst for Remitly, noting that Remitly shares currently trade at a significant discount to Wise despite showing faster growth. The company has demonstrated strong performance with a 57.74% return over the last year and impressive revenue growth of 34.37%.
The analysts do not view Wise’s expansion into the U.S. as a medium-term threat to Remitly. They emphasized that Wise and Remitly cater to slightly different customer bases, indicating that the competitive landscape may remain stable for the time being. According to InvestingPro, Remitly maintains a strong financial position with a current ratio of 2.78, indicating robust liquidity to support its operations.
Concerns remain around the proposed U.S. remittance tax, which continues to affect Remitly’s stock. The analysts acknowledged this uncertainty but suggested that the stock could recover if the tax is removed or reduced. Despite current challenges, analysts expect the company to become profitable this year, with InvestingPro data showing strong financial health metrics.
The report underscores Remitly’s growth prospects, even amid regulatory challenges. The analysts’ reaffirmation of the Outperform rating suggests confidence in the company’s ability to navigate the evolving market conditions.
Remitly Global Inc continues to be a focal point in the financial services sector, as investors watch for developments related to the U.S. remittance tax and Wise’s listing shift.
In other recent news, Remitly Global Inc. reported strong financial results for the first quarter of 2025, with revenue reaching $361.6 million, marking a 34% increase from the previous year. The company also achieved a net income of $11.4 million, maintaining its profitability for the second consecutive quarter. KeyBanc Capital Markets responded to these results by raising its price target for Remitly from $24.00 to $27.00, while maintaining an Overweight rating on the stock. The firm noted Remitly’s strong GAAP net income and positive financial metrics, highlighting the company’s 34% revenue growth and expanding profit margins as encouraging signs. Wolfe Research, on the other hand, reiterated a Peerperform rating for Remitly, reflecting a neutral stance on the company’s stock. This decision was influenced by Remitly’s focus on product optimization and competitive pricing strategies aimed at sustaining growth. These developments underscore the company’s ongoing efforts to enhance customer retention and drive incremental growth in revenue and gross margins.
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