New Street Research - Wise Group AB (WISE) WISE (Neutral, TP: £6.00, +20%) Wise Q4 23 - TPV light, but deposits stable/up and target NII running ahead

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New Street Research

Soomit Datta

EUR 8954.00 For Business Accounts Only

WISE (Neutral, TP: £6.00, +20%) Wise Q4 23 - TPV light, but deposits stable/up and target NII running ahead

WISE reported its Q4 trading statement this morning. Numbers were a touch light at TPV and revenue, as higher spending cohorts (cross-border property, investments principally) are proving more cyclical than thought. With that said, deposit trends are stable (following SVB etc.), whilst NII yields in Europe (~100bps) compare to our expectation of 50bps across the group going forward. When all is said and done we were surprised to see the stock off close to 15% at one point this morning.

18/04/2023 1 EN

Underlying

Wise Group AB

Wise Group AB is a Sweden-based provider of services and tools in the area of human resources management (HRM). It is a parent company within the Wise Group (the Group). The Group offers Web-based services within process descriptions and document support, expertize and capacity within professional consultancy services, as well as recruitment, management outplacement and career coaching. As of December 31, 2011, the Company had six subsidiaries, which operated as separate business segments, namely Netsurvey Bolinder AB, responsible for employee and customer surveys; Wise Consulting AB, responsible for coaching, conversions and human resources (HR) consulting; Wise OnLine AB, offering online services for information and decision support in the HR area; K2 Search AB, a search and executive search company; Wise Professionals AB, engaged in the recruitment of skilled staff for advanced services, and Talentum HR AB, offering consultancy, guidance, education and seminars.

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SE0007277876 Nasdaq Nordic Stockholm Sweden

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Analysts

Soomit Datta

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WISE (Neutral, TP: £6.00, +20%) Wise Q4 23 - TPV light, but deposits stable/up and target NII running ahead

WISE (Neutral, TP: £9.00, +4%) Wise - Upgrades from NII to continue; Slowing Core and falling rates the concern; Updated estimates

WISE (Neutral, TP: £7.25 +10%) WISE - H1 24: Half of EBITDA coming from Cash / deposits

WISE (Neutral, TP: £7.25, -3%) H1 24 - Strong; significant EBITDA unwind to reach >20% margin outlook

NSR Policy: It’s the Election, Stupid (or Is It?): Comparing Harris and Trump on Leadership

Altice Pre-3Q24 Model Update

T-Mobile selling 3.45GHz portfolio

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