Wise PLC (LSE:WISE), the money transfer and payments group, heads into its full-year results next month with growing momentum and a supportive backdrop.
Shares in the company have gained more than 20% this year, and analysts at JP Morgan see further upside, lifting their price target to £13.75 from £12.42 and maintaining an 'overweight' rating.
In a note published ahead of results on 5 June, JP Morgan points to a “positive mid-term set up”, citing the group’s strong position in both personal and platform transfers.
Wise’s technology-led cost advantage remains a key differentiator, helping it to grow market share in consumer-facing services where pricing is increasingly under scrutiny.
The group’s Business segment may prove harder to scale. The market for cross-border services to small and medium-sized enterprises is becoming crowded, with both fintech challengers and incumbents vying for share. Even so, Wise’s scale and infrastructure give it a foundation to compete.
There are other tailwinds too. The company has launched an expanded buyback programme covering roughly 4% of the free float, and JP Morgan sees a potential inclusion in the FTSE 100 as a source of technical support for the shares.
While questions around stablecoins persist across the sector, the bank downplays the near-term risk, noting limited real-world adoption to date.
With its low-cost model, strong brand and regulatory clarity, Wise is navigating its sector’s growing pains with confidence.
The competitive pressures remain, but for now the company looks well placed to keep moving money (and its own valuation) in the right direction.