Analysts See 10% - 50% Upside In Remitly - Read Why - Remitly Global (NASDAQ:RELY)

Analysts initiate coverage on Remitly Global Inc (NASDAQ:RELY) with price targets symbolizing an upside of 10% - 50%.
Goldman Sachs analyst Will Nance initiated coverage with a Buy rating and $61 PT, representing a 50% upside.
The analyst Remitly is a "secular winner" that benefits from increasing digital adoption trends in the remittance space, making it well-positioned to take share in the "fragmented" landscape of cross-border remittances.
The company's "sleek" mobile platform and its brand geared towards helping immigrants and their families will continue to resonate in the marketplace, Nance notes.
Barclays analyst Ramsey El-Assal initiated coverage with an Overweight rating and a $48 PT, implying an 18% upside.
Remitly is a digital financial services provider that facilitates cross-border remittances for migrant workers in 135 countries and 1,700 corridors, El-Assal notes.
The analyst thinks the company should be able to continue to take share from legacy competitors.
KeyBanc analyst Josh Beck initiated coverage with an Overweight rating and a $48 PT.
A large, highly fragmented global money remittance market capturing $540 billion in volume presents a unique opportunity for Remitly to capture share from participants lacking in scale, service, and user experience via highly localized user experience, fast and reliable payment capabilities, and trusted service, Beck notes.
Citi analyst Andrew Schmidt initiated coverage with a Buy rating and $49 PT, implying a 20% upside. As a mobile-first pure play on digitally initiated remittances, Remitly benefits from "robust secular digital remittance market growth," Schmidt notes. The analyst sees a "significant growth runway" in existing and new remittance corridors.
Wolfe Research analyst Darrin Peller initiated coverage with a Peer Perform rating and a $45 PT, implying a 10% upside.
JPMorgan analyst Tien-tsin Huang initiated coverage with an Overweight rating and $57 PT, implying a 40% upside.
The analyst likes Remitly as a "mission-led growth company, bringing modern digital solutions to the antiquated global remittance market."
With less than 3% share of its serviceable addressable market for cross-border remittances to low-and-middle-income countries, Remitly is a "durable share gainer in a fragmented market dominated by legacy providers," Huang notes.
William Blair analyst Robert Napoli initiated coverage with an Outperform rating and no price target.
Remitly has a small share of a "massive, highly fragmented" market as there are over 280 million immigrants and the global remittance market exceeds $1.5 trillion annually, Napoli notes.
He estimates nearly 90% of Remitly's business is driven by digital methods, compared to 20% of the mix at legacy providers like The Western Union Co (NYSE:WU) or MoneyGram International Inc (NASDAQ:MGI).
The analyst believes the company is in the early innings of a "long-term high-growth story" and that management targets at least 20% revenue growth and at least 20% adjusted EBITDA margins are reasonable.
Price Action: RELY shares traded higher by 1.75% at $40.9 on the last check Monday.

RELYRemitly Global Inc

$21.58-%

Overview

WUThe Western Union Co

$8.390.24%

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