Wells downgrades Flywire on challenge of rebuilding confidence

Wells Fargo analyst Andrew Bauch downgraded Flywire to Equal Weight from Overweight with a price target of $18, down from $20. The firm says that while the stock’s valuation and company’s takeout potential should limit downside, rebuilding investor confidence will be a multi-quarter challenge for Flywire. While bulls may argue that the “bad news” is in the rear-view, Wells can’t rule out a continuation of negative headlines, with Canada’s updated cap on international students for 2025 and 2026 and a new wave of potential cuts in Australia being examples, the analyst tells investors in a research note. The firm says it did not appreciate how these headlines would have a second derivative impact on Flywire’s demand, which it sees as an incremental risk heading into Q3.