KeyBanc has increased its price target for Remitly Global (RELY, Financial) from $24 to $27 while maintaining an Overweight rating on the stock. The decision comes after Remitly's robust first-quarter results, which demonstrated comprehensive gains. The firm highlights that the company's performance was primarily driven by enhanced customer engagement and expansion among larger senders. Additionally, KeyBanc observes that there are no significant challenges arising from immigration policy or broader economic conditions impacting the results.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for Remitly Global Inc (RELY, Financial) is $27.77 with a high estimate of $32.00 and a low estimate of $23.91. The average target implies an upside of 31.66% from the current price of $21.09. More detailed estimate data can be found on the Remitly Global Inc (RELY) Forecast page.
Based on the consensus recommendation from 12 brokerage firms, Remitly Global Inc's (RELY, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Remitly Global Inc (RELY, Financial) in one year is $28.68, suggesting a upside of 35.99% from the current price of $21.09. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Remitly Global Inc (RELY) Summary page.
RELY Key Business Developments
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Remitly Global Inc (RELY, Financial) reported a strong start to 2025 with a 34% year-over-year revenue growth, surpassing expectations.
- The company achieved a 16% adjusted EBITDA margin, indicating strong profitability and operational efficiency.
- Remitly Global Inc (RELY) exceeded the 'rule of 50', showcasing a rare combination of high growth and strong profitability.
- The company has successfully diversified its business across geographies and product offerings, reducing dependency on any single market.
- Remitly Global Inc (RELY) has made significant progress in attracting high-amount senders, with transactions over $1,000 growing by more than 45% year-over-year.
Negative Points
- The macroeconomic and geopolitical environment remains uncertain, which could impact future performance.
- Despite strong results, the company is cautious in its guidance due to potential macroeconomic uncertainties.
- Remitly Global Inc (RELY) faces tougher revenue comparisons in the second half of 2025 due to strong performance in the latter half of 2024.
- The company anticipates increased stock-based compensation expenses in the second quarter, which could impact profitability.
- Marketing investments are expected to increase in the second quarter, which may affect short-term margins despite long-term growth potential.
