On Wednesday, Monness Crespi Hardt initiated coverage on Remitly Global Inc (NASDAQ:RELY), assigning the stock a Buy rating and setting a price target of $29.00.
The firm expressed optimism about the company's potential to surpass its projected earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2024 and 2025. This positive outlook is based on the anticipation of improved EBITDA margins as the company scales up its operations.
The analyst highlighted the significant total addressable market (TAM) that remains untapped for Remitly, a digital financial services provider for immigrants. The firm believes that the increasing trend of bankification among immigrant populations, where individuals who traditionally may not have used banks begin to do so, will contribute to the company's growth. Additionally, the opportunity to further expand in the markets where Remitly already has a presence, referred to as heritage markets, is seen as a key driver for the company's revenue growth.
According to Monness Crespi Hardt, these factors combined will play a crucial role in unlocking Remitly's earnings potential.
InvestingPro Insights
As Remitly Global Inc (NASDAQ:RELY) garners a Buy rating from Monness Crespi Hardt with a price target of $29.00, InvestingPro data provides additional context to the company's financial health and market performance. Remitly's market capitalization stands at $3.79 billion, reflecting its substantial size within the digital financial services sector. Despite the challenges of not being profitable over the last twelve months, the company has shown impressive revenue growth of 44.48% in the same period, suggesting a strong market demand for its services.
The company's Price / Book ratio is at 7.17, which indicates that the stock is trading at a premium compared to its book value. This could be indicative of the market's high expectations for future growth. Moreover, analysts have revised their earnings expectations downwards for the upcoming period, which may be a point of consideration for potential investors.
Among the InvestingPro Tips, it's noteworthy that while Remitly has not been profitable over the last twelve months, analysts predict the company will turn a profit this year. Additionally, the company's liquid assets surpass its short-term obligations, providing financial stability and the ability to manage short-term liabilities.
For those looking to delve deeper into Remitly's financials and future prospects, InvestingPro offers additional tips to help investors make informed decisions. With the use of coupon code PRONEWS24, users can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking further insights into companies like Remitly. In total, there are six more InvestingPro Tips available that could provide a clearer picture of the company's financial trajectory and operational performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.