Remitly Global stock rating reiterated at Market Outperform by JMP

Investing.com - JMP Securities has reiterated its Market Outperform rating and $32.00 price target on Remitly Global Inc (NASDAQ:RELY), according to a research note published Tuesday. The target represents significant upside potential, with analyst consensus maintaining a strong buy recommendation and targets ranging from $25 to $32.

The firm’s analysis comes as Remitly shares have declined 29% since their recent post-first quarter earnings peak and 8% month-to-date in July. According to InvestingPro data, the stock’s RSI indicates oversold conditions, while revenue growth remains robust at 34.37% over the last twelve months.

JMP identified three main areas of investor concern likely driving the downward pressure on the stock: recent political dynamics around immigration in the U.S. and weakness in the U.S. to Mexico remittance corridor.

Additional factors cited include increased headlines on the broadening offering of stablecoins and their potential impact on the remittance industry’s long-term business model.

The firm also noted that FinCEN orders against two Mexican banks that are small partners of Remitly may be contributing to investor concerns about the stock.

In other recent news, Remitly Global Inc. reported a strong financial performance for the first quarter of 2025, with revenue reaching $361.6 million, marking a 34% increase from the previous year. The company achieved a net income of $11.4 million, continuing its streak of GAAP profitability for the second consecutive quarter. KeyBanc Capital Markets reacted positively to these results, raising their price target for Remitly from $24 to $27, while maintaining an Overweight rating, citing substantial growth and profitability as driving factors. Wolfe Research maintained a Peerperform rating, reflecting a neutral stance on Remitly’s stock, highlighting the company’s focus on product optimization and customer retention. Meanwhile, BMO Capital reiterated its Outperform rating on Remitly, noting the potential positive impact of Wise (LON:WISEa)’s primary listing shift to the U.S., which could benefit Remitly despite ongoing concerns about the proposed U.S. remittance tax. Remitly’s strategic initiatives, such as increasing transaction limits and enhancing customer experience, have attracted larger-amount senders and micro-SMBs, contributing to the company’s growth. These recent developments underscore the company’s strong market position and the confidence of analysts in its growth prospects.

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