Seaport Global Securities has maintained a Buy rating on Flywire (NASDAQ: FLYW), with a steady price target of $26.00. The focus of investor interest is on the company's outlook for 2025, with various potential revenue and EBITDA outcomes being analyzed.
Seaport Global Securities has considered a range of scenarios for Flywire's performance next year.
The analysis includes a Base Case, Bear Case, and Bull Case, each exploring different revenue and EBITDA possibilities for Flywire in 2025. The Base Case suggests a potential stock price range of $18 to $28 for Flywire. In contrast, the Bear Case presents a downside risk with a stock price range of $13 to $19, based on forecasts for the next year.
The Bull Case, however, indicates a significant upside potential with the stock price potentially reaching between $31 and $39, surpassing the consensus for the following year. The recovery of Flywire's operations in Canada is a critical factor for investors, as the report emphasizes its importance within each scenario.
Moreover, Seaport Global Securities encourages investors to consider Flywire's robust growth outside of Canada. The company's international business segments, which form the majority of Flywire's overall revenue, are expanding rapidly. The growth outside of Canada is deemed even more crucial for the company's future stock valuation.
In other recent news, Flywire Corporation reported solid financial results for the second quarter of 2024, with a 26% year-over-year increase in revenue, excluding ancillary services, to $99.9 million.
The adjusted gross profit mirrored this growth, reaching $63.4 million. The company also saw a significant uptick in adjusted EBITDA, which rose by $5.9 million year-over-year to $5.8 million.
These developments include the acquisition of Invoiced, a SaaS platform for B2B accounts receivable, and the initiation of a $150 million share buyback program. Despite challenges in the Canadian market, Flywire exceeded its adjusted EBITDA guidance and increased its full-year adjusted EBITDA margin expectations.
Furthermore, the company expects its revenue and adjusted EBITDA to continue rising in 2024. Flywire remains optimistic about long-term growth potential in Canada and plans to leverage global distribution capabilities with the Invoiced acquisition.
Despite facing headwinds in Canada, the company's strategic growth pillars led to a pipeline growth exceeding 50% YoY, particularly in the travel vertical which saw over 55% growth YoY.
InvestingPro Insights
Recent metrics from InvestingPro provide a deeper look into Flywire's financial health and market performance. Notably, Flywire's market capitalization stands at $2.25 billion, reflecting its size and market value. Despite not having turned a profit over the last twelve months, analysts are optimistic, as they predict the company will become profitable this year. This aligns with the positive revenue growth of 27.09% reported in the last twelve months as of Q2 2024, indicating a robust upward trend in sales. Moreover, Flywire's liquid assets have surpassed its short-term obligations, suggesting a solid liquidity position that may reassure investors of the company's ability to meet its immediate financial commitments.
InvestingPro Tips highlight that Flywire's stock has experienced a significant decline over the last six months, with a 26.75% decrease in price total return. Yet, the company's recent revenue growth and the expectation of net income growth this year could be a signal for potential recovery. For those interested in further analysis and additional recommendations, InvestingPro offers more tips on Flywire at https://www.investing.com/pro/FLYW, where investors can find a comprehensive set of insights to inform their investment decisions.
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