There are not many AIM-listed tech firms that can count Apple, Netflix and Amazon among their clients. Boku Inc (AIM:BOKU) can...and UBS reckons it is only getting started.
The broker has initiated coverage on the London-based payments group with a Buy rating and a 300p price target, implying roughly 21% upside from its current 247p share price.
Boku’s business is simple in concept, though tricky in execution: it helps merchants accept “local payment methods” (LPMs), everything from e-wallets to bank transfers, in markets where credit cards are less common.
It now connects more than 250 payment types across 90 countries, giving global merchants access to customers they might otherwise struggle to reach.
UBS's analysts see a company still early in its expansion, with less than 0.5% penetration of what they estimate to be a $3 trillion addressable market.
The bank argues that Boku’s revenue guidance, for growth of more than 20% a year, looks conservative. Even modest increases in penetration could meet market expectations without needing a rush of new clients.
The next big milestone is a new “off-the-shelf” platform due in 2026, designed to make onboarding new merchants faster and cheaper. UBS believes that could push Boku into a scalability “inflexion point”, supporting revenue growth of more than 30% annually.
The upcoming Capital Markets Day on 16 October could offer more detail — and perhaps a short-term catalyst for the shares.
Longer term, Boku is well placed to benefit from a structural shift in how people pay online. Local payment methods already account for more than half of all business-to-consumer e-commerce transactions outside the US and China, and that share is expected to keep rising.
UBS values the stock at about 20 times expected 2026 earnings before interest, tax, depreciation and amortisation, a multiple it says is in line with peers.
Risks include customer churn or geopolitical bumps in cross-border trade, but the analysts’ conclusion is clear: Boku’s reach, technology and timing make it a compelling way to tap into the global payments boom.