AnalystConsensusTarget updated the narrative for RELY

Remitly Global's analyst average price target has been reduced by approximately $0.83 to $24.83. Analysts cite tempered near-term outlooks and uncertainties around future revenue growth, lending products, and external policy impacts, despite continued optimism about the company’s long-term potential.

Analyst Commentary

Recent Street research presents a balanced view of Remitly Global, with analysts weighing both opportunities and challenges as they update their outlooks and price targets for the company.

Bullish Takeaways

• Bullish analysts highlight Remitly Global as a strong secular growth vehicle in FinTech, noting its faster-than-expected scaling and profitability compared to industry peers.
• Efforts to diversify revenue streams and drive increased profitability are expected to close the valuation gap with competitors and support a favorable long-term outlook.
• Multiple potential catalysts in the coming quarters, such as new product launches and investor events, are seen as opportunities to unlock further upside for the stock.

Bearish Takeaways

• Bearish analysts express caution regarding management’s signals that near-term revenue guidance is realistic, suggesting limited upside surprises in the immediate quarters.
• Concerns about new lending products focus on unanswered questions around unit economics, funding strategies, and exposure to credit risk, which could introduce volatility to earnings.
• Ongoing regulatory and policy developments, particularly related to immigration enforcement, may create headwinds and contribute to market uncertainty around Remitly’s growth projections.
• Some believe that long-range revenue forecasts may be overly optimistic, which could result in valuation adjustments if company performance does not meet expectations.

What's in the News

• Launched Remitly One, a comprehensive financial membership program offering products such as Remitly Flex (send now, pay later funding up to $250), Remitly Wallet (with 4% annual boost cash reward for members), Remitly Card (no foreign transaction fees for members), and exclusive cash back rewards. Expanded benefits include multi-currency accounts, U.S. credit-building options, and third-party perks available to select U.S. customers for $9.99/month. A broader U.S. and international rollout is planned (Key Developments).
• Announced a new share repurchase program to buy back up to $200 million of common stock. This aligns with a disciplined strategy to return capital to stockholders and offset dilution from employee equity compensation. No expiration date was set for the program (Key Developments).
• Raised full-year fiscal 2025 earnings guidance, now expecting total revenue between $1.61 billion and $1.62 billion. This is up from previous guidance of $1.574 billion to $1.587 billion. The company is also projecting a positive GAAP net income for the year (Key Developments).
• Issued third-quarter 2025 earnings guidance, projecting revenue between $411 million and $413 million, which represents a 22% to 23% increase year over year. The company is also forecasting a modest GAAP net income (Key Developments).

Valuation Changes

• Consensus Analyst Price Target has decreased modestly from $25.67 to $24.83, reflecting a slightly more cautious valuation outlook.
• Discount Rate has risen slightly from 7.37% to 7.39%, indicating a marginal increase in perceived risk or required return.
• Revenue Growth projection has dipped marginally from 19.38% to 19.37% in updated estimates.
• Net Profit Margin estimate has edged down from 5.60% to 5.59%, signaling a slight reduction in expected profitability.
• Future P/E ratio has decreased from 52.90x to 51.31x. This suggests a lower expected valuation multiple for the company’s future earnings.