On Thursday, BMO Capital Markets updated its outlook on International Money Express (NASDAQ:IMXI) shares, increasing the price target to $30 from the previous $29, while retaining an Outperform rating on the stock. This revision follows the company's strong first-quarter earnings, which surpassed expectations on the bottom line.
The firm's decision to adjust the price target upward is based on revised forward earnings per share (EPS) estimates, which have been increased by 2-4%. Despite a noted deceleration in top-line growth, partially due to a less robust performance in the U.S.-Mexico corridor as a result of the Mexican Peso's appreciation, International Money Express has been successful in enhancing operational efficiencies.
Moreover, the company has been actively repurchasing its shares, with an estimated buyback yield of approximately 13%. BMO Capital highlights that the market may not be fully recognizing International Money Express's consistent market-share gains and its potential to sustain double-digit EPS growth.
International Money Express has demonstrated a commitment to streamlining its operations and returning value to its shareholders through these share repurchases. BMO Capital's revised price target reflects confidence in the company's ongoing ability to deliver robust financial performance.
InvestingPro Insights
With the recent positive outlook from BMO Capital Markets on International Money Express (NASDAQ:IMXI), investors may find additional insights by considering real-time data and InvestingPro Tips. The company's management has been actively engaging in share buybacks, signaling confidence in the company's value, which aligns with BMO Capital's note on the share repurchase yield. Moreover, International Money Express is trading at an attractive P/E ratio of 10.74, when adjusted for the last twelve months as of Q1 2024, which is relatively low compared to its near-term earnings growth.
InvestingPro data also highlights that the company has maintained profitability over the last twelve months, with a robust return on assets of 12.22%. While the gross profit margins appear weak at 23.77%, International Money Express's liquid assets exceed its short-term obligations, providing the company with a solid financial footing. Additionally, analysts predict the company will be profitable this year, which may offer reassurance to investors concerned about future performance.
For those interested in a deeper analysis, InvestingPro offers a range of additional tips on International Money Express, which can be accessed through the platform. Investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to a comprehensive suite of tools and insights to inform their investment decisions. With 5 more InvestingPro Tips available for IMXI, investors have the opportunity to gain a more nuanced understanding of the company's financial health and market position.
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