Flywire (FLYW) is expected to grow foreign exchange-neutral revenue in the "high-teens" over the next few years, with "conservative" 2026 visa assumptions likely leading to upward estimate revisions and multiple expansion, Morgan Stanley said in a report Monday.

Flywire has reported four consecutive quarters of "mid-single-digit" plus Revenue Less Ancillary Service beats, which the investment bank said has "earned back credibility," with investors. The spread between visa declines and revenue growth in key education markets demonstrates share gains and cross-selling success, particularly as the company expands domestic payments processing and increases penetration of its Student Financial Software platform, where US annual recurring revenue more than tripled year over year, the report said.

Looking ahead, Morgan Stanley said a less severe visa backdrop in 2026, faster growth in healthcare following a "Cleveland Clinic win" and continued strength in B2B and travel could support the company to approach or exceed the high end of its "26 RLAS outlook" again, according to the report.

Morgan Stanley has upgraded Flywire to overweight from equal-weight and raised its price target to $17 from $15.

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