WISE (Neutral, TP: £9.00, +6%) WISE - Q4 24: Volumes and revenue miss by 3%

WISE reported its FY 24 trading statement this morning (to Mar-24). The core business missed Q4 revenue and volumes by 3%, coming from a combination of Business (lower onboarding in part) as well as Personal (macro perhaps). Sequential volumes are flat in Q4, y/y growth is only 15% which benchmarks against mid-term expectations for total income growth (which includes NII) of 20% (whilst rates will fall/deposit remuneration should rise at some stage). The steer into H2 is for slightly higher gross margins (>H1), based on current NII run-rate as well as lower FX volatility.

WISE (Neutral, TP: £7.25, +5%) WISE - Q2 and Deja Vu: Target up to £7.25

Looking ahead to the Q2 24 Trading Statement on 12 October consensus expectations continue to lag - as we saw into the FYs in June and when the stock subsequently rallied hard. This is likely to support the stock into numbers and comes partly from NII (which will though be discounted by the market) but supported also by a solid core business.

What if the EV slowdown were not a headwind on auto semi growth?

EV adoption is slowing in the West, but to the benefit of hybrids. Is this well understood by those investing in auto semi stocks?

AMD 1Q24: Reaching critical mass in Datacenter GPU for 2025. It is good news to us… Buy, $200 TP

South African Telcos South African Telcos - CY23 H2 review – Modest improvements

H2 was a better semester for the SA Telcos. Service revenue and EBITDA trends improved and capex – while still above historic levels – was contained. However, improvements were modest as the environment remains difficult and growth remains limited.