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On Wednesday, Goldman Sachs downgraded Flywire stock, a global payments enablement and software company, to a Neutral rating from Buy. The firm also set a new price target of $15.00 for the stock, below the current trading price of $17.64. According to InvestingPro data, the stock has declined nearly 27% over the past year, though analysis suggests it may be undervalued at current levels. The downgrade follows Flywire’s fourth-quarter earnings report and the issuance of its 2025 guidance, which failed to meet market expectations.
Flywire’s guidance for the upcoming year was notably lower than the consensus, falling short by approximately 10% at the midpoint. Despite these challenges, InvestingPro data shows the company maintains strong fundamentals with a healthy current ratio of 2.33 and revenue growth of 26.5% in the last twelve months. This forecast does not take into account the recent acquisition of Sertifi, which has been finalized, and includes the anticipated impact of a 10% reduction in the company’s workforce. Goldman Sachs had anticipated weaker guidance due to foreign exchange effects, but the extent of the forecasted decline was unexpected.
The company’s outlook also includes a projected 30% decrease in Canadian and Australian cross-border education revenues in 2026, a significant revision from its previous expectation of stable revenues from Canada. Additionally, Flywire is accounting for increased challenges in the U.S. market, which has seen a recent drop in student visa issuances. This downturn in the U.S. came as a surprise to investors, as student immigration issues have not been a significant topic under the new administration.
Goldman Sachs’ analyst noted that the market had hoped for signs of stabilization in these areas, and the emergence of new problems in the U.S. was not anticipated. The full details of Flywire’s fourth-quarter performance and the adjustments to Goldman Sachs’ expectations are available in the report. For deeper insights into Flywire’s financial health, which InvestingPro rates as GOOD, and access to 7 additional ProTips about the company’s prospects, investors can explore the comprehensive Pro Research Report, available exclusively to subscribers. The changes in projections and the downgraded rating reflect the analyst’s revised outlook on the company’s financial health and market position.
In other recent news, Flywire has been the subject of several analyst downgrades following its fourth-quarter earnings report, which fell short of expectations. Raymond (NSE:RYMD) James downgraded Flywire from ’Strong Buy’ to ’Outperform’ and reduced the price target to $17, citing a 5% miss on revenue and a conservative 2025 guidance that trails market expectations. JPMorgan also adjusted its price target to $16 while maintaining a Neutral stance, noting challenges in the education sector and a strategic review that includes a 10% reduction in workforce. BTIG downgraded Flywire to Neutral, highlighting severe headwinds in key markets like Canada and Australia and expressing concerns over the company’s growth strategy.
UBS followed suit, downgrading Flywire to Neutral with a new price target of $15, pointing to a fiscal year 2025 revenue growth forecast that is significantly lower than anticipated. Deutsche Bank (ETR:DBKGn) also downgraded the stock to Hold, slashing the price target to $16 due to disappointing revenue figures and a revised outlook that falls short of previous projections. Flywire’s strategic review aims to realign its resources and focus on high-growth potential areas, though analysts remain cautious about its ability to deliver consistent top-line growth. The company’s acquisition of Sertifi, a hotel management software company, is seen as a positive move, adding $3 billion in monetizable payment flow. Despite these efforts, Flywire’s revised growth projections and market challenges have led to a reevaluation of its stock by multiple analyst firms.
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