Flywire Corporation (FLYW)

March 2021

Revenue for quarter

45M

Flywire Corporation (FLYW)

Let’s stick with online payments. Flywire got its start as an online payment service specializing in the educational industry, but it has since branched out to the healthcare and travel sectors, as well. The company’s payment platform offers secure processing for customers around the world, offering both improved collections and localized payment options. The Boston-based company operates on a truly global scale, with over 2,250 client businesses who operate in 240 countries and 130 different currencies.

Flywire moved into the public arena on May 26, in an IPO that saw 10.44 million shares go on the market. The underwriters of the offering had an option on an additional 1.566 million shares. The new stock started trading on the NASDAQ, and the company’s initial pricing put it at $24 per share. The share sale brought in over $366 million on the first day, well above the $250 million the company was aiming for.

"We see opportunity for Flywire to expand within its existing education and healthcare verticals, which have large TAMs. Currently, Flywire has penetrated less than 15% of the cross-border tuition market, and with the addition of domestic payments processing, we believe there is ample runway in education. Flywire is also active in healthcare and travel, with additional opportunity in B2B payments," O’Neill opined.

The analyst added, "We expect Flywire to continue to grow within its verticals due to its software-driven strategy, which strengthens its competitive moat in cross-border payments by delivering convenience and ease of use to clients and their customers."

This company, while new to the public markets, has already made its mark with Wall Street’s analysts – they’ve given FLYW shares a unanimous Strong Buy consensus, based on 9 positive reviews set since the IPO. The shares are priced at $35.52 and the $42.63 average price target indicates room for ~20% share price growth this year. (See FLYW stock analysis on TipRanks)