Bank of America initiated coverage of Remitly with a Buy rating, setting an $18 price target that implies 34% upside. Analyst Aditya Buddhavarapu lauds the firm's "digital native remittance platform" for transforming cross-border money transfers through speed and transparency across 5,300 corridors.

The firm serves over 8 million quarterly active users across 170 receiving markets, capturing roughly 8% share of the $685 billion remittance segment to low- and middle-income countries. BofA argues its user-focused design delivers a superior experience to traditional banks and money-transfer operators.

Remitly is expanding beyond person-to-person transfers into higher-value segments like small businesses, adding Wallet and Card products. This strategy aims to fuel a cycle of volume growth and profitability while tapping a total addressable market the bank estimates at $20 trillion across multiple payment types.

BofA dismisses stablecoin disruption fears, noting Remitly's regulatory licenses and network position it as a potential facilitator. The current market price reflects a discount to the bank's valuation, offering an entry point before broader market penetration.