In a report released on February 20, Gustavo Gala from Monness reiterated a Buy rating on Remitly Global (RELY – Research Report), with a price target of $35.00.
Gustavo Gala has given his Buy rating due to a combination of factors that suggest Remitly Global is poised for growth. The company has shown strong performance in its topline and EBITDA, surpassing expectations and providing guidance that exceeds consensus estimates. Although the implied EBITDA margins for the upcoming year appear conservative compared to recent quarters, this conservative outlook may position the company for further outperformance.
Additionally, Remitly is well-positioned to capture a significant portion of the remittance industry’s profit pool, benefiting from lower customer acquisition costs and increased organic traffic. The company’s strategic marketing opportunities and the industry’s shift towards digitization are expected to drive revenue growth. Despite some uncertainties in transaction expenses, the overall financial outlook remains positive, supporting the Buy rating.
In another report released today, Barclays also maintained a Buy rating on the stock with a $29.00 price target.
RELY’s price has also changed dramatically for the past six months – from $14.250 to $25.790, which is a 80.98% increase.