Wise Group PLC on Friday rose 2.7% supported by an upgrade by Jefferies.
“We think Wise is at an inflection point in its Card business, generating the next leg of growth after FX transfers and neo-bank like products (assets, interest),” the broker said.
Jefferies thinks the widely anticipated net interest income (c£310 million run-rate) slowdown is likely overdone as it expects further absolute growth in Wise Account balance to mitigate the likely reduction in interest rates.
In addition, the bank does not believe Wise will achieve its 80% return of gross interest target, providing some additional cushion.
It added the newly launched JefData WATT corroborates its view on internationalisation and user stickiness driving financial 2025/26 EBITDA estimates 23-57% higher.
This puts Jefferies 17% and 26% above consensus, it said.
The broker upgraded Wise to 'buy' from 'hold,' with an increased price target of 1,024p, up from 717p.