U.S. Markets closed

4 Reasons Why JMP Is Bullish On International Money Express

Jayson Derrick

The bullish case for International Money Express (NASDAQ: IMXI), a financial technology company that facilitates money transfers from the U.S. to 17 countries in Latin America and the Caribbean, can be made for four reasons, according to JMP. 

The Analyst

Analyst David Scharf initiated coverage of International Money Express with a Market Outperform rating and $15 price target.

The Thesis

The case for buying Intentional Money Express' stock is fourfold, Scharf said in the initiation note. (See the analyst's track record here.) 

  • The company is among the biggest facilitators of cross-border money transfers within the fast-growing markets between the U.S., Latin America and the Carribean. Through the recent merger with Intermex, the company has become the second-largest facilitator of transactions to Mexico and the largest to Guatemala. Intermex offers a multiyear runway growth profile from International Money Express through a continued buildout in existing core markets and a material expansion in new states including Texas and California.
  • International Money Express boasts an industry-leading growth profile, as revenue should increase by 23 percent in 2018 and 20 percent the year after, the analyst said. This should translate to EBITDA growth of 29 percent and 17 percent, respectively.
  • The payments company is rightfully focusing its business on the concept that agent productivity is a better metric than agent count. Transactions per month and EBITDA per agent make the company attractive from an efficiency point of view, especially compared to the larger global remittance companies.
  • After five years of investments, International Money Express has a technology platform that is superior to its peers in multiple categories, Scharf said: transaction completion in half the time, historical uptime of 99.95 percent and the ability to offer additional services like check cashing.

Price Action

Shares of International Money Express were trading lower by nearly 1 percent Monday afternoon.

Related Links:

Euronet Vs. Western Union: A Pair Trade From Goldman Sachs

MoneyGram Partners With Ripple, Will Use XRP To Lower Costs

See more from Benzinga

© 2018 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.