JMP Securities Bullish on Remitly, Maintains $32 Target Amidst Growth Trends

JMP Securities has reaffirmed its positive stance on Remitly Global Inc. (NASDAQ: RELY), maintaining a "Market Outperform" rating and a price target of $32. The analysts are optimistic about the digital remittance company's growth prospects, citing strong revenue momentum and favorable industry trends.

Analyst Confidence and Key Drivers

JMP Securities highlighted Remitly's impressive revenue growth of 33.85% over the last twelve months, supported by a healthy current ratio of 2.73. The firm's confidence is bolstered by the company's management guidance for revenue and EBITDA. Analysts are closely monitoring near-term industry drivers such as website and download traffic, promotional activities, and central bank data on remittance volumes, alongside broader macroeconomic and political trends.

• Strong Revenue Growth: Remitly has shown significant revenue momentum.

• Positive Outlook: JMP Securities reiterates a "Market Outperform" rating.

• Profitability Expected: Analysts anticipate the company will become profitable this year.

Financial Performance and Market Position

InvestingPro data indicates that analysts project earnings per share of $0.89 for FY2025. The stock has already delivered a substantial return of 60.44% in the past six months. JMP Securities believes Remitly is well-positioned for continued growth, with the $32 price target reflecting this positive outlook.

Mixed Analyst Sentiments and Competitive Landscape

While JMP Securities maintains a bullish view, other recent analyses present a more varied picture. Citi analyst Andrew Schmidt also increased Remitly's price target to $32 with a "Buy" rating, citing revenue exceeding expectations. BMO Capital Markets maintained an "Outperform" rating with a $27 target, emphasizing customer growth and a strategic shift towards customer quality. However, a critical report by Spruce Point raised concerns regarding customer testimonials, Trustpilot reviews, and financial practices, suggesting the company might be overvalued. Despite some deceleration in app downloads, Remitly continues to outperform competitors like Wise and Western Union.

Remitly Global Inc. operates in the international remittance sector, leveraging technology to simplify cross-border money transfers for immigrant communities worldwide.

Sources

• JMP maintains Remitly stock with $32 target, upbeat on trends By Investing.com, Investing.com.