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Deutsche Bank analyst Nate Svensson initiated coverage of Flywire Corp. (NASDAQ: FLYW) stock with a Buy rating on Monday, seizing the opportunity created by recent selling pressure to advise investors to consider a long position.
Stock Performance
FLYW has experienced a 7.3% decline since the beginning of 2024. In the past year, the stock has retreated by 19.6%.
Discounted Valuation
Trading at around five times his 2025 EV/Gross Profit estimate, FLYW is being exchanged at approximately a 25% discount in comparison to its peers, as per the sell-side analyst’s note.
Investment Thesis
Svensson contends that such undervaluation is uncalled for, emphasizing the payments company’s position as a “core holding for fintech growth investors,” owing to its competitive advantage as the leading, vertical-specific, integrated payments provider across appealing and underpenetrated addressable markets.
Differing Opinions
His Buy rating contradicts the SA Quant system rating of Sell and the average Wall Street analyst rating of Strong Buy.
