© Reuters.
On Friday, Morgan Stanley adjusted its stance on Flywire (NASDAQ:FLYW), shifting the rating from Overweight to Equalweight, while raising the price target to $30.00 from the previous $27.00. The adjustment reflects the analyst’s view that the company’s premium valuation now aligns more closely with their projections.
The company has shown notable performance improvements, particularly in the fourth quarter of 2023. Flywire’s Net Dollar Retention (NDR) rate increased to 125% in 2023, up from 124% in 2022. Additionally, the company succeeded in scaling its net new contribution by signing over 700 new clients in 2023, with a year-over-year acceleration in Education sector additions.
Flywire also managed to resolve issues related to delayed service launches and delivered better-than-expected take rates despite increased travel seasonality. Moreover, the company saw a marginal improvement in foreign exchange (FX) volumes in India.
Despite these positive developments, the analyst suggests that the current stock price reflects a balanced risk-reward scenario. The company’s strong execution and the positive trajectory of its business are acknowledged, but the analyst has opted for a more cautious approach, preferring to step back at the current market levels.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
This story originally appeared on Investing
