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Investing.com - JMP Securities has reiterated its Market Outperform rating and $32.00 price target on Remitly Global Inc (NASDAQ:RELY), identifying the company as a top secular growth story and small cap pick. According to InvestingPro data, analyst price targets range from $25 to $32, suggesting significant upside potential, while the company’s current market capitalization stands at $3.56 billion.
JMP believes recent pricing pressure on the digital remittance company does not represent a fundamental concern in the near term. The firm highlighted three significant barriers to competition: trust, compliance infrastructure, and data-driven AI supporting pricing, customer acquisition, and KYC (know your customer). This view is supported by Remitly’s strong financial position, with InvestingPro analysis showing a healthy current ratio of 2.78 and robust revenue growth of 34.37% over the last twelve months.
The firm sees these competitive advantages as key factors Remitly has developed over the past decade that would be difficult for competitors to replicate.
While JMP acknowledges the global shift toward digital transfers in the remittance industry is "both gradual and uneven across transfer corridors," it remains optimistic about Remitly’s growth trajectory.
The research firm projects Remitly could achieve over 20% compound annual growth rate (CAGR) over the next few years, supporting its continued bullish stance on the stock. This aligns with InvestingPro’s analysis, which indicates expected net income growth this year and forecasts 25% revenue growth for FY2025.
In other recent news, Remitly Global Inc. reported a robust financial performance for the first quarter of 2025, achieving a 34% increase in revenue year-over-year, reaching $361.6 million. The company also recorded a net income of $11.4 million, marking its second consecutive quarter of GAAP profitability. Following these results, KeyBanc Capital Markets raised its price target for Remitly from $24.00 to $27.00, maintaining an Overweight rating. Analysts at KeyBanc highlighted the company’s strong growth in customer engagement and transactions from larger senders as key factors in its positive financial metrics.
Additionally, BMO Capital reiterated its Outperform rating on Remitly, with a price target of $30.00, noting the company’s growth prospects despite regulatory challenges. BMO analysts mentioned Wise (LON:WISEa)’s move to list in the U.S. as a potential positive development for Remitly, given the company’s faster growth compared to Wise. Meanwhile, Wolfe Research maintained a Peerperform rating on Remitly, focusing on the company’s efforts in product optimization to enhance customer retention and revenue growth.
JMP Securities also reiterated its Market Outperform rating for Remitly, setting a price target of $32.00. They identified investor concerns related to political dynamics around U.S. immigration and the introduction of stablecoins in the remittance industry. Despite these challenges, analysts across the board expressed confidence in Remitly’s ability to navigate evolving market conditions, with a focus on expanding its remittance services and enhancing product offerings. These developments underscore Remitly’s significant presence in the financial services sector as it continues to adapt to market changes.
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