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On Wednesday, Roth/MKM initiated coverage on Currenc Group Inc (NASDAQ:CURR) with a positive outlook, assigning a Buy rating to the company’s stock, along with a price target of $3.50. The firm’s analyst, Craig Irwin, provided insights into the rationale behind the favorable rating, highlighting the company’s operations and growth potential. With a current market capitalization of $98 million and the stock trading at $2.11, CURR has shown strong momentum with a 17% gain year-to-date, according to InvestingPro data.
Currenc Group Inc, operating primarily in Southeast Asian markets, offers remittance services and airtime top-ups through its subsidiaries, Tranglo and WalletKu. The company focuses on serving unbanked migrant workers who depend on regular cross-border money transfers. According to Irwin, Currenc Group’s proactive strategy in reducing user fees has significantly contributed to a 28% increase in remittance volume in 2023 and a 19% rise through September 2024. InvestingPro analysis reveals the company maintains a gross profit margin of 32%, though it faces challenges with cash burn and short-term obligations.
The analyst predicts that Currenc Group’s ongoing geographic expansion and stabilizing take rates will bolster the company’s growth visibility. Irwin’s analysis suggests that these factors, along with the company’s recent performance, make Currenc Group’s stock an attractive opportunity for investors. The firm encourages opportunistic buying of Currenc stock ahead of anticipated catalysts that may confirm the company’s growth trends.
The endorsement from Roth/MKM comes as a strong signal to the market regarding Currenc Group’s strategic positioning and its potential to capitalize on the needs of a specific customer segment within the remittance industry. The analyst’s statement underscores the company’s success in driving volume growth through fee reductions and indicates a positive outlook for the company’s expansion efforts and their impact on future financial performance.
In other recent news, CURRENC Group Inc. has introduced its SEAMLESS AI Call Centre Solutions, a suite of AI-powered tools aimed at enhancing customer service operations in the financial sector. The new suite includes Text AI, Voice AI, and Avatar AI, designed to improve efficiency and satisfaction for financial institutions. This launch follows a strong performance year for CURRENC, with the company processing 11 million remittance transactions totaling $4.54 billion in 2023, marking a 28% increase from the previous year.
CURRENC Group also announced the resignation of Chief Financial Officer Haggai Ravid, effective December 31, 2024. CEO Ronnie Ka Wah Hui will temporarily assume the role of interim CFO. Ravid’s departure is amicable, with no disagreements over accounting practices, and includes a compensation package outlined in a Cooperation Agreement.
These developments come as CURRENC Group continues to expand its global presence, now operating in 150 countries with partnerships with over 5,000 banks. The company’s strategic focus on AI development, including plans for AI Data Centres and AI-as-a-Service, is part of its broader mission to transform global financial services.
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