Buy Rating Affirmed for International Money Express Amidst Growth and Digital Expansion

Needham analyst Mayank Tandon reiterated a Buy rating on International Money Express (IMXI – Research Report) today and set a price target of $25.00.

Mayank Tandon’s rating is based on a nuanced analysis of International Money Express’s recent performance and future outlook. Although the company experienced mixed results in the first quarter, with a particular decline in remittances to Mexico affecting revenues, there were significant positive signs as well. The ability of management to improve margins despite these challenges led to better than expected profits. Furthermore, the growth in money transfer transactions, which increased by 4.8% year-over-year, suggests that the company is successfully expanding its market share in key areas. Additionally, the impressive surge in digital revenue, which rose by over 59% from the previous year, indicates a strong adaptation to the increasing digitization of financial services.

Reaffirmation of the fiscal year 2024 guidance by the management, along with a promising outlook for the second quarter, reflects confidence in the company’s potential to enhance growth towards the latter half of the year. The current valuation of the stock, with a forward P/E multiple of approximately 8 times for FY25, is considered attractive by Tandon, implying that the stock may be undervalued given International Money Express’s robust market position, growing influence, and consistent margin performance. These factors combined present a favorable risk-reward scenario, justifying the Buy rating and the target price of $25 that Tandon maintains for IMXI.

In another report released today, Monness also reiterated a Buy rating on the stock with a $28.00 price target.

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International Money Express (IMXI) Company Description:

International Money Express, Inc. engages in the provision of electronic money remittance services. It offers wire transfer, money order and check cashing services. The company was founded in 1994 and is headquartered in Miami, FL.