Wolfe Research maintains peerperform rating on Remitly stock
Investing.com
Published Jun 03, 2025 08:46AM ET
On Tuesday, Wolfe Research analysts reiterated a Peerperform rating for Remitly Global Inc (NASDAQ: RELY). The decision reflects the company's ongoing focus on product optimization to enhance customer retention and drive incremental growth in revenue and gross margins. The strategy appears to be working, with InvestingPro data showing impressive revenue growth of 34.37% and a robust gross profit margin of 59.49% over the last twelve months.
The analysts noted that while Remitly intends to remain competitive in pricing, the company emphasizes customer experience, ease of use, and support as key factors in building trust with its users. Recent investments in product and partner capabilities have allowed Remitly to increase transaction limits, attracting larger-amount senders and micro-SMBs. According to InvestingPro , the company maintains a healthy financial position with a current ratio of 2.78, indicating strong ability to meet short-term obligations.
This shift in customer demographics is expected to result in lower average take rates. However, this is anticipated to be balanced by higher value per customer (VPC), maintaining stable pricing structures when adjusted for transaction size.
The analysts highlighted that the similar growth rates between revenue and RLTE (Gross Margin) suggest a stable underlying pricing model. Remitly's strategy aims to optimize its product offerings while managing competitive pricing to sustain growth.
The reiterated Peerperform rating indicates Wolfe Research's neutral stance on Remitly's stock, reflecting the company's current market position and growth strategies. While trading at a relatively high Price/Book multiple of 6.07, InvestingPro analysis suggests the stock is fairly valued, with analysts projecting profitability this year. Discover more insights and 7 additional ProTips for RELY with an InvestingPro subscription.
In other recent news, Remitly Global Inc. reported significant financial achievements for the first quarter of 2025, with revenue reaching $361.6 million, marking a 34% increase compared to the previous year. The company also achieved a net income of $11.4 million, maintaining its profitability for the second consecutive quarter. Analyst firm KeyBanc Capital Markets responded positively to these results by raising Remitly's stock price target from $24.00 to $27.00, maintaining an Overweight rating. The strong performance was attributed to growth in customer engagement and a substantial increase in transactions, particularly from larger senders.
Remitly's earnings exceeded market expectations, reflecting its effective operational strategies and adaptability. The company also provided guidance for the second quarter of 2025, projecting revenue between $383 million and $385 million, which represents a growth of 25-26%. For the full year, Remitly expects revenue to range from $1,574 million to $1,587 million, with an adjusted EBITDA forecast of $195 million to $210 million. KeyBanc's optimism about Remitly's shares is supported by the company's strong business model and expanding profit margins.
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Additionally, Remitly has been diversifying its revenue sources, with 34% of its revenue now coming from outside the U.S., highlighting its robust market position. The company plans to increase marketing investments to support continued growth in send volume per active customer. These recent developments underscore Remitly's strategic focus on expanding its remittance services and enhancing product offerings.
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Written By: Investing.com
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