Monness analyst Gustavo Gala has reiterated their neutral stance on IMXI stock, giving a Hold rating yesterday.
Gustavo Gala has given his Hold rating due to a combination of factors affecting International Money Express. One of the primary concerns is the uncertainty surrounding recent policy changes related to immigration from Latin America to the U.S., which could impact the company’s operations and growth prospects. Additionally, the company faces challenges in bridging the digital and retail divide, as it lags behind industry peers in digital adoption despite recent acquisitions. This gap is expected to take considerable time and resources to narrow, which could slow growth compared to competitors.
Moreover, the need for significant marketing investments to shift the company’s channel mix towards digital solutions is another factor contributing to the Hold rating. The potential for margin concessions to stimulate digital growth further complicates the outlook. Furthermore, potential buyers may remain hesitant until the company’s digital strategy is more clearly defined and policy uncertainties are resolved. Overall, these challenges suggest that the company’s estimates and valuation may not see significant upward revisions in the near term.
According to TipRanks, Gala is a 3-star analyst with an average return of 4.3% and a 50.00% success rate. Gala covers the Technology sector, focusing on stocks such as Euronet Worldwide, Block, and International Money Express.