Monness Crespi views selloff in Remitly Global shares as buying opportunity

Monness Crespi reiterates a Buy and $29 price target on Remitly Global, saying it views Thursday’s selloff as a buying opportunity. The firm notes that Remitly missed on revenue by about 2% vs. consensus but far exceeded estimates on EBITDA, leading to a reiteration of top line guide and a raise in EBITDA commensurate to the beat in Q1 2024. Shares are selling off because management has built a track record of beating expectations and came in light on Q1 seasonality, says Monness. The firm takes this opportunity to buy on weakness as its thesis on the structural profitability of incremental digitization is playing out well, which gives it confidence in upside to 2024 EBITDA guidance as the year progresses and stronger prints roll through.