BTIG thinks takeout bid ‘certainly a potential outcome’ of Intermex review

BTIG analyst Andrew Harte notes that Intermex (IMXI) announced this morning along with its Q3 results that it has initiated a process to assess strategic initiatives, which could include among others, a potential sale in a private transaction. The company also removed its FY24 guidance in light of the ongoing strategic review. Shares are trading higher today as investors are likely hopeful for a takeout bid similar to the one that MoneyGram received in 2022 that was about 50% higher than its share price at the time, the analyst noted. While the firm thinks a takeout bid is “certainly a potential outcome of the strategic review,” it maintains a Neutral rating on Intermex as it argues that if the company remains public, “EBITDA growth levels will not meet investor expectations.” The firm sees Intermex’s current digital/retail mix as challenging given underlying market trends, the analyst added.