B. Riley Lowers Price Target to $15, Maintains Buy Rating on Flywire

B. Riley has revised its price target for Flywire (FLYW) from $17 to $15, while maintaining a Buy rating. The adjustment reflects the impact of Flywire's acquisition of Sertifi and ongoing challenges with student visas in Canada and Australia. Despite these hurdles, B. Riley anticipates resolution and predicts 17-23% FX-neutral revenue growth for Q2 and 17-23% FX-neutral revenue growth for the full year.

B. Riley has revised its price target for Flywire (FLYW) from $17 to $15, while maintaining a Buy rating. The adjustment reflects the impact of Flywire's acquisition of Sertifi, a software-as-a-service platform in the travel industry, and ongoing challenges with student visas in Canada and Australia. Despite these hurdles, B. Riley anticipates resolution and predicts 17-23% FX-neutral revenue growth for Q2 and 17-23% FX-neutral revenue growth for the full year.

The recent acquisition of Sertifi is expected to contribute to Flywire's revenue growth, with the company reporting a 16.8% year-over-year growth in Q1 2025, excluding Sertifi's contribution. The company's adjusted gross profit increased by 14.6% year-over-year, reaching $82.5 million. Flywire has also seen strong momentum in its travel vertical, with significant new client acquisitions and revenue growth.

However, Flywire faces macroeconomic headwinds, particularly in the Canadian higher education market, impacting growth. The company anticipates potential challenges in the US education sector due to visa and geopolitical issues. Despite these challenges, B. Riley expects these political hurdles to be resolved eventually.

Wall Street analysts have set a one-year price target average of $14.58 for Flywire, with a high estimate of $21.98 and a low estimate of $11.50. The consensus recommendation from 16 brokerage firms is currently 2.4, indicating an "Outperform" status. GuruFocus estimates the GF Value for Flywire at $37.58, suggesting an upside of 243.35% from the current price of $10.945.

Flywire has signed 200 new clients in the first quarter, indicating strong demand for its solutions. The company maintains a low churn rate, reflecting strong client partnerships and satisfaction. Flywire is also expanding its global footprint, particularly in non-traditional markets like Germany, France, Japan, and Singapore.

References:
[1] https://www.gurufocus.com/news/2940339/flyw-b-riley-adjusts-price-target-maintains-buy-rating-on-flywire-flyw-stock-news
[2] https://www.benzinga.com/insights/analyst-ratings/25/06/46061935/expert-outlook-flywire-through-the-eyes-of-8-analysts