- Wise Class A
- 02 February 2024 14:46:48
Source: Sharecast
The investment bank, which previously had a ‘hold’ recommendation, said: "We think Wise is at an inflection point in its card business, generating the next leg of growth after forex transfers and neo-bank like products."
Jefferies added that its own web and app traffic tracker, which allows it to asses Wise’s global app downloads, "corroborates our view on internationalisation and user stickiness, driving our 2025-26 earnings before interest, tax, depreciation and amortisation estimates 23% to 57% higher.
"Share of high interchange countries of total Wise app down downloads have increased to 40% from 33% in mid-2021, while daily active users saw an increase to nearly a third from a fifth over the same period."
It continued: "We think the widely anticipated net interest income slowdown is likely overdone, as we expect further growth in Wise Account balance mitigating the likely reduction in interest rates."
Jefferies also increased its price target on the London-listed fintech, to 1,024p from 717p.
Elsewhere, Barclays upgraded Wizz Air and easyJet as it cited "positive prospects" for European low-cost carriers.
The bank lifted Wizz to ‘equalweight’ from ‘underweight’ and upped the price target to 2,200p from 1,750p, while easyJet was upgraded to ‘overweight’ from ‘equalweight’, with a new price target of 700p, up from 450p.
Barclays said it’s positive on the easyJet holidays opportunity to take share and grow profits.
Citi has trimmed its fourth-quarter estimates for BT Group while reiterating its ‘buy’ rating.
The bank said BT’s third-quarter results had been in line, with Openreach coming in ahead but the Business division "missing significantly".
It continued: "The comparatives in the fourth quarter are tougher, especially for the business segment, so we lower our estimates to reflect -25% decline in earnings before interest, tax, depreciation and amortisation, versus -17% in the third quarter.
"The rest should be in line, but it does mean that growth could dip to slightly negative.
"The 2025 full-year has tougher pricing dynamics as we pass the anniversary of record increases last April. But operating expense pressures should also slightly ease, and restructuring effort at Business should also help.
"We look for marginally positive growth but one that may be more weighted in the second half."
