Intermex downgraded to Market Perform from Outperform at BMO Capital

BMO Capital downgraded Intermex (IMXI) to Market Perform from Outperform with a price target of $11, down from $18. The company reported a “broad-based” Q1 miss, the analyst tells investors in a research note. The retail remittance market remains under pressure, while a new shift in customer behavior has emerged, reduced transaction frequency, that is pressuring Intermex to a degree not previously contemplated, the analyst tells investors in a research note. The firm adds the company’s accelerating investment in digital marketing, while a longer-term positive, implies further near-term headwinds for EBITDA margins. BMO worries about additional downside risk to Intermex’s revised fiscal 2025 guidance. Further, the likelihood of a take-private transaction following the conclusion of its strategic review “is now significantly lower,” adds the firm.