AnalystConsensusTarget updated the narrative for RELY

Remitly Global's analyst price target has been revised downward from $26.50 to $25.67, as analysts cite near-term revenue growth concerns and ongoing questions about new product economics, despite improved profitability metrics.

Analyst Commentary

Analysts have recently weighed in on Remitly Global, highlighting a range of factors that are contributing to revised price targets and divergent outlooks on the stock's future trajectory. Their commentary underscores both optimism and caution, tied closely to Remitly's operational performance and strategic decisions.

Bullish Takeaways

• Analysts are encouraged by Remitly's reputation as a strong secular growth company in the FinTech space. The company has scaled faster and with greater profitability than many peers.
• There is optimism that the company's efforts to diversify revenue streams and enhance profitability could narrow or eliminate Remitly's discounted valuation multiples relative to competitors.
• Several potential catalysts are identified for the second half of 2025, including upcoming product announcements, quarterly earnings releases, and investor events.

Bearish Takeaways

• Cautious analysts are concerned about near-term growth, particularly in light of management's guidance that may not surpass current expectations. Projections also suggest Street revenue estimates for 2026 could be too optimistic.
• Uncertainty persists regarding the economics of newly introduced lending products. There are also questions about their long-term funding and credit risk exposure.
• Ongoing news related to immigration enforcement and its downstream impacts adds another layer of risk, potentially affecting Remitly's core customer base and transaction volumes.

What's in the News

• Remitly Global launched Remitly One, an all-in-one financial membership that features flexible funding (Remitly Flex), a wallet with 4% boost rewards, a debit card with no foreign transaction fees, and additional rewards. The company plans further member benefits, including multi-currency accounts, U.S. credit-building opportunities, and expanded international availability. (Key Developments)
• The company raised its earnings guidance for 2025, now expecting total revenue of $1.61 to $1.62 billion, a 27% to 28% year-over-year increase, and projecting GAAP net income to turn positive. (Key Developments)
• Remitly announced a $200 million share repurchase program, aiming to return capital to stockholders and offset dilution from employee equity compensation. The program does not have an expiration date. (Key Developments)
• The Board of Directors authorized a buyback plan on August 6, 2025. (Key Developments)
• Third-quarter 2025 guidance was issued, projecting revenue of $411 to $413 million (up 22% to 23% year-over-year) and a modest GAAP net income for the period. (Key Developments)

Valuation Changes

• Consensus Analyst Price Target has decreased from $26.50 to $25.67, reflecting a modest reduction in projected fair value.
• Discount Rate has fallen slightly, moving from 7.42% to 7.37%. This suggests a marginal adjustment in risk assumptions.
• Revenue Growth forecasts have declined from 20.42% to 19.38%. This indicates softer expectations for top-line expansion.
• Net Profit Margin is expected to improve, increasing from 5.10% to 5.60%. This points to a more favorable profitability outlook.
• Future P/E ratio projections have decreased from 58.59x to 52.90x. This signals lower anticipated earnings multiples ahead.