Boku Inc (AIM:BOKU) has earned a price target bump from Jefferies analysts following their attendance at the San Francisco and London-based mobile payment company’s Capital Markets Day last week.
Jefferies raised its price target to 324p from 275p, implying upside from Boku’s closing price of 243p on Tuesday, and repeated its ‘Buy’ rating.
The analysts highlighted what they see as a compelling growth outlook driven by both market dynamics and Boku’s product expansion.
At the CMD, they believe Boku “showcased a strong growth opportunity partly driven by healthy underlying market dynamics on the back of existing strong relationships with mega eCommerce merchants, but also through the company's efforts to develop new products.”
“We continue to believe Boku is well-positioned to continue to compound well above its mid-term ambition (greater than 20% per annum) for the foreseeable future,” they wrote.
While Boku outlined a total addressable market of $6.4 trillion for large global e-commerce merchants, Jefferies emphasized that only around 30% to 40% of this represents realistic serviceable opportunities. The firm noted that this still leaves substantial room for expansion.
Looking ahead, Jefferies highlighted the potential impact of Boku’s plans to add 50 to 100 new merchants from 2026 onward.
The analysts expect these additions to be largely margin-accretive, given the anticipated efficiency and reusability of Boku’s existing platforms.
On the Treasury & Banking side, Jefferies pointed to the potential for the unit to evolve beyond optimizing local payment flows, possibly supporting broader payouts and transfers and acting as a driver for new merchant wins.
Jefferies also noted operational improvements presented during the CMD, observing that while top-line growth remains the primary focus, Boku appears committed to sustaining profitable expansion.
Reflecting these factors, Jefferies raised its revenue and earnings forecasts by 5% to 8%, underpinning the new price target. Boku currently trades at around 33x 12-month forward P/E, below its long-term average of 40x, and 17x forward EV/EBITDA versus a historical 20x, they added.