reports
- Soomit Datta
WISE (Neutral, TP: £9.00, +4%) Wise - Upgrades from NII to continue; ...
Wise reported its Q3 Trading Statement this morning with NII ahead of expectations. Strong stock performance in 2023 was driven by consensus upgrades to EBITDA / net income and we expect another round from NII to come: deposit remuneration has levelled out for now (33% of retained yield in Q3), and Wise will likely jettison the target of 80% return to depositors.
- Soomit Datta
WISE (Neutral, TP: £7.25 +10%) WISE - H1 24: Half of EBITDA coming fr...
WISE followed up on its October release with full H1 profitability and it's interesting to compare the H1 EBITDA margin of 37% with the mid-term guide of >20%; the difference is deposits earning interest income which make up 50% of this EBITDA (after stock comp).
- Soomit Datta
WISE (Neutral, TP: £7.25, -3%) H1 24 - Strong; significant EBITDA unwi...
WISE reported its H1 trading statement this morning, with volumes a touch light (1%) but revenue 2% ahead and Total income 5% ahead, the latter supported by strong NII as WISE continues to retain more yield on deposits than it ultimately intends to
- Soomit Datta
WISE (Neutral, TP: £6.85, +3%) WISE - Taking profits: Cut to Neutral
Having been fans of the business model since initiation, we upgraded WISE to Buy following the Q4 Trading statement (April) predominantly due to expectations that consensus EBITDA would need to materially move up. Following new clarity on net interest income with this week’s FYs this process is now underway (we think margins could hit 30% FY 24) – and arguably reflected in a 25% stock move over this period (and in the last 5 days!).
- Soomit Datta
- Liberum Research Team
- Soomit Datta
WISE (Buy, TP: £6.70, +25%) WISE: Price increases to provide further ...
WISE has been rolling out quite significant price increases across its base over the last week. This reflects rising costs - as already flagged to the market - and provides more comfort on core profitability. Perhaps more importantly, however, it's a pretty clear signal that NII will not be used as a significant profitability prop for the foreseeable future, which means NII gains should drop down through the P&L and drive consensus upgrades.
- Liberum Research Team
- Soomit Datta
WISE (Buy, TP: £6.75, from £6.00, +25%) WISE - Upgrade to BUY: Big hi...
Following yesterday's Trading statement and resultant stock weakness we're upgrading WISE to Buy. Whilst Q4 TPV was a touch light, we think the market's focus should be firmly on the new steer for NII which drives material upgrades to EBITDA for us (40% in fiscal 2025).
- Liberum Research Team
- Soomit Datta
WISE (Neutral, TP: £6.00, +20%) Wise Q4 23 - TPV light, but deposits ...
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.
- Liberum Research Team
- Liberum Research Team
- Soomit Datta
WISE LN (Neutral, TP: GBP6.00, +11%) # European Payments Initiation #...
We add to our European PayCo coverage today initiating on Wise (WISE:LN). We really like the Wise business model: rapid and cheap FX transfers through a slick App with deeper account services increasingly layered on. With market share just of just 4% in Personal cross-border transfers, lower still on SME, further share gains should flow quite easily given the slower and more expensive offering from incumbent banks which dominate the market.
- Liberum Research Team
- James Allen
- Nick Anderson
LIBERUM: Wise - Postcards from US – food for the bears
Recent news flow from the US is supportive of the Wise bear case. Block (aka Square) now expenses share-based compensation (SBC) in its margin guidance; this is very significant. Silicon Valley Bank’s failure highlights the increasing competition for deposits and their rising cost, a trend also evident in the UK. We have consistently argued that SBC is a real cost of doing business; fully expensing it increases consensus FY24 EV/EBITDA by 36%. We also view NII, the prime driver of consensus upgr...
- Liberum Research Team
Wise Group AB: 2 directors
Two Directors at Wise Group AB bought/sold 400,000 shares at between 4.400SEK and 44.200SEK. The significance rating of the trade was 73/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over...
Ford Equity International Rating and Forecast Report
Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind...
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