Citizens has increased its price target for Remitly Global Inc (NASDAQ:RELY) to $22.00 from $20.00 while maintaining a Market Outperform rating. The bank highlighted a recent management update in which Adjusted EBITDA guidance at the midpoint was raised by more than 10% compared with the outlook provided two months earlier.
The brokerage noted that company guidance now implies an Adjusted EBITDA margin roughly 160 basis points higher than Citizens had expected previously. That revision underpinned the higher price target despite Remitly shares trading at $13.61 and the stock having declined about 47% over the past year. Revenue, however, rose 31% over the same period.
Management reaffirmed its medium-term targets through 2028, sticking with a revenue range of $2.6 billion to $3.0 billion and an Adjusted EBITDA margin target of 20% to 22% for that horizon. Citizens signaled it believes Remitly can exceed the company’s stated run-rate margin goals, citing the precedent of Western Union reaching 20% margins at maturity in a store-based model.
InvestingPro data cited by analysts shows Remitly’s balance-sheet liquidity as a strength. The firm reported a current ratio of 2.88, indicating liquid assets comfortably exceed short-term liabilities and providing flexibility for execution against growth plans.
Analyst coverage of Remitly shows a broad range of price targets, stretching from $16 up to $28, leaving scope for upside from current levels depending on execution and multiple expansion. Citizens’ upgrade complements other recent analyst activity in the name, including Cantor Fitzgerald’s initiation of coverage with an Overweight rating.
Management has reiterated a disciplined financial framework, including an intention to observe the Rule of 40 and to balance growth and profitability in coming years. InvestingPro further notes that analysts expect the company to reach profitability this year, a view that exists despite a reported high price-to-earnings ratio of 142.5.
Operational and corporate developments accompanied the guidance update. Remitly appointed Sebastian J. Gunningham as Chief Executive Officer, succeeding co-founder Matt Oppenheimer. The leadership transition coincided with the company exceeding its revenue and Adjusted EBITDA guidance for the fourth quarter and full-year 2025 and with an Investor Day presentation that outlined growth assumptions through 2028.
At Investor Day the company projected high teens revenue growth for 2026 and provided an Adjusted EBITDA outlook for 2026 in the range of $300 million to $320 million. Management’s public statements and the updated guidance have been framed as part of a broader effort to expand beyond Remitly’s core business and to address concerns around immigration headlines and slower revenue growth trends.
For investors seeking more detailed financial models and analyst notes, InvestingPro offers an expanded Pro Research Report on Remitly and more than 1,400 other U.S. equities.
Context and implications
Citizens’ price-target increase reflects a reassessment of near-term profitability potential driven by management’s upward revision to Adjusted EBITDA guidance and a higher margin trajectory. The firm’s view that run-rate margins could surpass company guidance adds an element of conviction to the upgrade, while Remitly’s reported liquidity provides a buffer as it pursues the targets reiterated for 2028.