Remitly Global (RELY) Has a Healthy Upside Despite Downward Target Price Revisions

Remitly Global, Inc. (NASDAQ:RELY) is one of the 15 software stocks with the highest upside potential. On January 8, Wolfe Research analyst Darrin Peller lowered the firm’s price target for the stock from $18 to $16 while maintaining a Buy rating. The adjusted price target implies a 19.4% upside from current levels as of January 9.

Goldman Sachs also presented a similar view on January 6. Will Nance, an analyst at Goldman Sachs, cut the price target on the shares from $19 to $17, implying a further 27% upside from here. The firm maintained its Buy rating on the stock.

The company held an Investor Day in early December to share its vision. Matt Oppenheimer, Co-Founder and CEO of Remitly, commented on the FY26 revenue growth expectations before the event:

”We continue to expect high-teens revenue growth. Revenue growth is expected to be driven by continued strength in core remittance business and growth from new products. In addition to that, today we are issuing an outlook for adjusted EBITDA in 2026 in the range of $300 million to $320 million. And at midpoint of the range, this translates into a margin expansion of approximately 150 basis points and a 30% year-over-year growth in EBITDA. We will balance growth, profitability, and investments into new products and customer categories.”

Remitly Global, Inc. (NASDAQ:RELY) is involved in the provision of digital financial services across Canada, the United States, and globally. The company provides cross-border remittances and complementary financial services through its website and mobile application.

While we acknowledge the potential of RELY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.