Wolfe Research upgrades Flywire stock rating to Outperform amid recovery

Investing.com - Wolfe Research upgraded Flywire (NASDAQ:FLYW) from Peerperform to Outperform on Wednesday, setting a price target of $16.00 for the payment solutions provider. The company has shown strong revenue growth of 22.2% over the last twelve months, with a healthy gross margin of 62.87%. According to InvestingPro data, three analysts have recently revised their earnings estimates upward for the upcoming period.

The upgrade comes despite Flywire shares being down 35% year-to-date, primarily due to visa issuance challenges across major markets, particularly in Canada and Australia. InvestingPro’s Fair Value analysis suggests the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report, which covers over 1,400 US stocks.

Wolfe Research cited strong execution through the first half of 2025 and promising initiatives in Flywire’s Travel segment and Sertifi as key factors behind the rating change.

The research firm also noted better-than-anticipated trends in the Education segment, suggesting material upside potential in a normalized environment.

The $16 price target is based on approximately 14 times Flywire’s estimated 2027 adjusted EBITDA of $117 million, excluding stock-based compensation, with Wolfe Research projecting high-teens to low-twenties percent top-line growth.

In other recent news, Flywire Corporation reported its second-quarter 2025 earnings, showcasing a revenue of $131.9 million, which exceeded the forecast of $120.44 million by 9.52%. However, the company’s earnings per share (EPS) fell short of expectations, posting -$0.10 compared to the anticipated -$0.07. Meanwhile, Goldman Sachs has reiterated its Neutral rating on Flywire, maintaining a price target of $15.00, citing strong performance in the travel segment and favorable foreign exchange conditions. Additionally, Flywire has announced significant enhancements to its Student Financial Software (SFS) solution for the UK higher education sector. These enhancements include real-time integrations with ERP systems like Unit4 (Agresso) and Banner Ethos, along with improvements to automate and manage US loan disbursement processes. The company also revealed four new client implementations of the SFS solution. These developments reflect Flywire’s ongoing efforts to strengthen its offerings in the education sector.

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