Update shared on15 Sep 2025
Fair value Decreased 7.34%Remitly Global's consensus price target has been lowered to $26.50 as analysts voiced concerns over limited near-term upside, long-term uncertainty around new lending products, and sensitivity to immigration enforcement headlines, partially offset by potential second-half 2025 catalysts.
Analyst Commentary
- Concerns over management's confirmation of Q3 guidance as accurate, indicating no imminent "beat and raise" potential, and signaling that current 2026 revenue forecasts may be too optimistic.
- Continued investor uncertainty regarding the long-term unit economics, funding strategy, and credit exposure of newly introduced lending products.
- The persistent risk and market reactions tied to news about immigration enforcement (ICE), which could impact Remitly's core customer base.
- Bullish analysts believe diversification of revenue streams and enhanced profitability could support rerating of the stock's discounted multiple relative to peers.
- Multiple potential catalysts cited by bullish analysts for the second half of 2025, including major product events, earnings releases, and investor days, which could drive positive sentiment.
What's in the News
- Remitly launched Remitly One, an all-in-one financial membership with features including a flexible “send now, pay later” service, a digital wallet with 4% rewards, early-access debit card, cashback, and planned multi-currency and credit-building capabilities.
- FY25 revenue guidance was raised to $1.61–$1.62 billion (27%–28% YoY growth) with positive GAAP net income projected.
- A $200 million share repurchase program was authorized to enhance capital returns and offset equity-based dilution.
- Q3 FY25 revenue is expected between $411–$413 million (22%–23% YoY growth) with modest positive GAAP net income.
Valuation Changes
Summary of Valuation Changes for Remitly Global
- The Consensus Analyst Price Target has fallen from $28.60 to $26.50.
- The Future P/E for Remitly Global has fallen from 63.31x to 58.59x.
- The Discount Rate for Remitly Global remained effectively unchanged, moving only marginally from 7.47% to 7.42%.
Disclaimer
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