Wise PLC (LSE:WISE) was one of the few blue chips in the green on a difficult day for equities after JP Morgan initiated coverage with an 'overweight' rating, citing strong growth, market share gains and long-term potential as a financial infrastructure provider.
The bank said the money transfer specialist has already secured around 5% of the personal cross-border payments market and 1% of the business segment, moving roughly £140 billion annually.
That’s a notable achievement for a 15-year-old company operating in a highly fragmented, £27 trillion market. For comparison, payment giant Adyen has captured less than 5% of global volumes after 19 years.
JP Morgan sees Wise continuing to grow sales and gross profit at a mid-to-high-teens pace as it scales its platform and invests further in expansion.
It also believes investor appreciation of Wise’s infrastructure ambitions - particularly its “Platform” offering - should drive multiple expansions over time.
The note marks a vote of confidence in Wise’s strategy of simplifying and cutting the cost of cross-border money transfers.
In afternoon trading, the stock was up 0.5p at 950.5p. The FTSE 100 was down 1%.