Flywire (FLYW) could post near-term earnings upside when it reports Q4 results Tuesday after market close, supported by stronger-than-usual web traffic trends and favorable foreign-exchange tailwinds, Morgan Stanley said in an earnings preview Tuesday.

Flywire's outlook for about 14% revenue-less-ancillary-services growth could prove conservative, as the company's assumed $35 million macro headwind for 2026 appears cautious given underlying segment trends.

The investment firm said Q4 web traffic rose about 3% sequentially, outperforming typical seasonality. This trend is supporting revenue and total payment volume, with FX tailwinds expected in Q4 and into early 2026.

The brokerage also said recent acquisitions in the business-to-business payments sector suggest Flywire may be trading at a discount to its potential private-market value, offering some valuation support.

Morgan Stanley maintained its equal weight rating on the stock but lowered its price target to $15 from $16.

Shares of Flywire were up more than 3% in recent trading.

Price: 10.99, Change: +0.34, Percent Change: +3.24