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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), citing the company’s expansion into the small and medium-sized business (SMB) market. The fintech company, currently valued at $4.2 billion, has shown strong revenue growth of 35% in the last twelve months.
The financial services firm noted that Remitly is creating a more streamlined setup specifically targeting freelancers and microbusinesses, a segment that represents a significant opportunity as competitors have shifted focus to larger companies. InvestingPro analysis shows the company maintains a strong liquidity position with a current ratio of 2.85, supporting its expansion capabilities.
JMP highlighted that Remitly’s simpler platform serves as a better fit for microbusinesses and freelancers that don’t necessarily require a complex platform with extensive features.
Initial results show these business customers have an average lifetime value (LTV) six times greater than individual customers, according to management statements cited by JMP.
The research note also mentioned that the business segment, excluding enterprises, increases Remitly’s total addressable market (TAM) by more than 10 times.
In other recent news, Remitly Global Inc. reported its second-quarter earnings for 2025, revealing a significant miss on earnings per share (EPS) expectations while surpassing revenue forecasts. The company’s EPS came in at $0.03, substantially below the forecasted $0.19, marking an 84.21% negative surprise. Despite this, Remitly’s revenue of $411.9 million exceeded expectations by 6.88%, driven by a 34% year-over-year increase. Additionally, Wolfe Research upgraded Remitly Global’s stock rating from Peerperform to Outperform, highlighting the company’s strong positioning to capitalize on trends in digital money transfer. KeyBanc also raised its price target on Remitly Global to $28.00 from $27.00, maintaining an Overweight rating due to the company’s solid quarterly results and raised guidance for fiscal year 2025. KeyBanc noted Remitly’s platform potential through product innovations, including the recently launched Remitly One. This new financial membership program offers a $9.99 monthly membership, allowing users to manage money across international borders with features like Remitly Flex. These developments reflect Remitly’s strategic moves to enhance its service offerings and capture market share from traditional providers.
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