Jefferies remains upbeat on Wise PLC (LSE:WISE), reiterating its ‘buy’ rating with a slightly lowered price target of 1,231p, offering 20% upside from current levels.
The US bank described the full-year results as largely in line with expectations, noting that the long-term investment case remains intact.
The standout was a 9% beat on underlying pre-tax profit, driven by improved margins of 21% compared to the 20% flagged in the preliminary numbers. W
Wise benefited from stronger gross margins as volumes scaled, while headcount grew more slowly than expected, giving some flexibility in managing costs. The company’s core cash position also swelled to £1.33 billion, adding £300 million over the year and carrying no debt.
Revenue growth in Asia-Pacific stayed strong, up 19% in the second half, though growth in North America slowed to just 6%.
Wise also confirmed plans to shift its primary listing to the US, a move aimed at tapping into a larger pool of growth-focused investors, though it will maintain a dual listing in the UK.
Looking ahead, Jefferies models 20% revenue growth for FY26, matching guidance, and expects margins to normalise but still stay at the top end of the firm’s mid-term target.
Wise trades at 24 times forward earnings, below its longer-term average.
In afternoon trading, the shares were up 8p at 1,059p.