Remitly Global stock price target lowered to $23 by JMP on headwinds

Investing.com - JMP Securities lowered its price target on Remitly Global Inc (NASDAQ:RELY) to $23.00 from $32.00 on Monday, while maintaining a Market Outperform rating on the fintech company. The stock, which has declined nearly 9% over the past week, is currently trading below its InvestingPro Fair Value estimate.

The firm cited three key factors weighing on the stock in the near term, including management’s indication that third-quarter guidance is accurate without a beat-and-raise setup, and suggestions that 2026 revenue forecasts by analysts may be too optimistic. Despite these concerns, Remitly has demonstrated strong revenue growth of 35% in the last twelve months, with a healthy current ratio of 2.85.

JMP also expressed concerns about unanswered questions surrounding Remitly’s new lending products, specifically regarding unit economics, long-term funding strategy, and credit exposure.

The third factor mentioned was ongoing news flow about ICE-related immigration enforcement impacts, with JMP specifically referencing last week’s bankruptcy filing of Tricolor Holdings as an example of downstream effects.

Despite these near-term headwinds, JMP maintained its Market Outperform rating, describing Remitly as "one of the strongest secular growth vehicles in FinTech" and noting the company has scaled "more quickly and more profitably than many had anticipated." For deeper insights into Remitly’s growth metrics and financial health (rated GOOD by InvestingPro), including 8 additional ProTips, subscribers can access the comprehensive Pro Research Report.

In other recent news, Remitly Global Inc. reported its second-quarter earnings for 2025, which revealed a significant miss on earnings per share (EPS) expectations. The company’s EPS was $0.03, falling short of the forecasted $0.19, representing an 84.21% negative surprise. However, Remitly’s revenue of $411.9 million surpassed expectations by 6.88%, driven by a 34% year-over-year increase. Additionally, KeyBanc raised its price target for Remitly to $28.00 from $27.00, maintaining an Overweight rating, following the company’s solid quarterly results and raised guidance for fiscal year 2025. Wolfe Research upgraded Remitly’s stock rating to Outperform, citing the company’s strong positioning in digital money transfer and financial services. JMP Securities reiterated its Market Outperform rating with a $32.00 price target, noting Remitly’s expansion into the small and medium-sized business market. The company also launched Remitly One, a new financial membership program for cross-border money management. These developments reflect Remitly’s strategic efforts to enhance its platform and capture market opportunities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.