Last Updated: 09 Nov 2024
Executive Summary
Remitly Global Inc. (RELY) is a leading provider of digital cross-border money transfer services. The company has a strong track record of growth, with revenue increasing by 39.3% year-over-year in the latest quarter. However, the company is currently unprofitable, with a net loss of $58.6 million in the latest quarter. The stock price is currently trading at $19.5, which is below the analyst target price of $23.5.
Company Overview
Remitly was founded in 2011 and is headquartered in Seattle, Washington. The company offers a mobile app and website that allows customers to send money to over 100 countries. Remitly has a network of over 10,000 payout partners, including banks, mobile wallets, and cash pickup locations.
Fundamental Analysis
Remitly's revenue has grown rapidly in recent years, from $576.6 million in 2020 to $1.18 billion in 2023. The company's gross profit margin has also improved, from 43.2% in 2020 to 43.9% in 2023. However, the company's operating expenses have also increased, leading to a net loss of $58.6 million in the latest quarter.
Remitly's financial performance is expected to improve in the coming years. The company is expanding into new markets and launching new products. The company is also expected to benefit from the growing demand for digital cross-border money transfer services.
Technical Analysis
Remitly's stock price has been trending higher in recent months. The stock price broke out of a resistance level at $18.50 in late October 2023. The stock price is now trading above its 50-day and 200-day moving averages. The relative strength index (RSI) is also above 50, indicating that the stock is in a bullish trend.
Short Term Outlook
Remitly's stock price is expected to continue to trend higher in the short term. The stock price is trading above its key moving averages and the RSI is above 50. The company is also expected to report strong financial results in the coming quarters.
Long Term Outlook
Remitly's long-term outlook is positive. The company is a leader in the growing digital cross-border money transfer market. The company is also expanding into new markets and launching new products. Remitly is expected to continue to grow its revenue and improve its profitability in the coming years.
Analyst Recommendations
Analysts are bullish on Remitly's stock. The average analyst target price is $23.5, which is above the current stock price of $19.5. Three analysts have a "Strong Buy" rating on the stock, six analysts have a "Buy" rating, and one analyst has a "Hold" rating.
