WISE (Neutral, TP: £8.30, +0%) WISE FY 24 update: Where did the Cross-border volume growth go?

Following this week’s FY 24 trading statement we have updated estimates. We see ongoing weaker than expected core cross-borer transfer volumes, driven by dilutive volume/new add, offset by debit card use (interchange) and stronger NII (higher for longer rates). In addition lower FX volatility is also supporting gross margins for the time being. It’s an interesting time to review historic cross-border volume expectations, relative to TAM, with downward revisions for consensus volumes expectations and market share gains seemingly lower than expected (or the TAM proving optimistic).

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.