On Wednesday, Monness, Crespi, Hardt, a financial services firm, commenced coverage on shares of International Money Express (NASDAQ:IMXI), a company specializing in money remittance services. The firm set a "Buy" rating on the stock with a price target of $27.00.
"We like the company™s focus on the LatAm corridor, among the largest and most profitable globally, while wielding a relatively well priced offering. This has allowed Intermex to take share from monoliths servicing multiple corridors," said an analyst at the firm.
The company's unique approach in targeting Market Service Areas (MSAs) with high immigrant densities through smaller retail formats has also been noted as a differentiator. This approach has allowed International Money Express to carve a niche for itself within the money transfer industry.
Monness, Crespi, Hardt expressed confidence in the company's conservative guidance for the current year, considering the ongoing macroeconomic uncertainties and competitive pricing pressures from rivals like Western Union (NYSE:WU) and Viamericas. Despite these challenges, the firm anticipates that International Money Express will achieve growth that surpasses the industry average.
The financial services firm forecasts that this growth trajectory will lead to at least a double-digit percentage increase in earnings per share (EPS) for International Money Express. Additionally, they believe that this performance will trigger a reevaluation of the company's stock to align with historical median levels, which are estimated to be around 13.5 times the next twelve months' price-to-earnings (NTM/PE) ratio.
InvestingPro Insights
As Monness, Crespi, Hardt initiates coverage on International Money Express with a buoyant outlook, real-time data from InvestingPro further enriches the narrative for potential investors. The company's market capitalization currently stands at a robust $720.52 million. Despite a competitive landscape, IMXI is trading at a Price/Earnings (P/E) ratio of 12.67, which is slightly below the forward-looking estimate of 13.5 times NTM/PE ratio suggested by the financial services firm. This could indicate that the stock is reasonably valued in the context of its earnings.
InvestingPro Tips highlight that International Money Express has been trading at a high Price/Book multiple of 4.83 as of the last twelve months ending Q1 2023, suggesting a premium valuation compared to the book value of its assets. This aligns with the financial services firm's view that the stock may be poised for a reevaluation. Additionally, it's worth noting that the company has seen a significant price uptick over the last six months, with a 25.35% total return, underscoring the positive momentum referenced by Monness, Crespi, Hardt.
While analysts have revised their earnings downwards for the upcoming period, the InvestingPro Tips also reveal that IMXI has maintained profitability over the last twelve months and that analysts predict the company will remain profitable this year. This could provide some reassurance to investors concerned about future earnings potential.
For those looking to delve deeper into International Money Express's financials and future prospects, InvestingPro offers numerous additional tips that can guide investment decisions. Utilize the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and gain access to comprehensive analysis and insights on IMXI at https://www.investing.com/pro/IMXI.
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