Remitly Global, Inc. (NASDAQ:RELY) Analysts Are Pretty Bullish On The Stock After Recent Results

Shareholders of Remitly Global, Inc. (NASDAQ:RELY) will be pleased this week, given that the stock price is up 15% to US$21.14 following its latest yearly results. Revenue hit US$944m in line with forecasts, although the company reported a statutory loss per share of US$0.65 that was somewhat smaller than the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Remitly Global after the latest results.

Check out our latest analysis for Remitly Global

Taking into account the latest results, the most recent consensus for Remitly Global from nine analysts is for revenues of US$1.24b in 2024. If met, it would imply a sizeable 32% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 29% to US$0.45. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$1.21b and losses of US$0.54 per share in 2024. So it seems there's been a definite increase in optimism about Remitly Global's future following the latest consensus numbers, with a cut to the loss per share forecasts in particular.

The consensus price target rose 6.6% to US$28.25, with the analysts encouraged by the higher revenue and lower forecast losses for next year. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Remitly Global, with the most bullish analyst valuing it at US$34.00 and the most bearish at US$19.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Remitly Global shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 32% growth on an annualised basis. That is in line with its 39% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.0% annually. So it's pretty clear that Remitly Global is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Remitly Global going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Remitly Global you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.