Analyst Hannes Leitner of Jefferies maintained a Buy rating on BOKU, with a price target of p275.00.
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Hannes Leitner has given his Buy rating due to a combination of factors that highlight Boku’s promising growth trajectory. The company has set ambitious mid-term goals, including a revenue growth target of over 20% CAGR and an EBITDA margin exceeding 30%, with significant progress expected from 2026 onwards. These targets are supported by Boku’s strategy to expand its merchant base and enhance its value-added services.
Boku’s growth strategy is anchored on three main pillars. Firstly, the company aims to grow with its existing merchants by increasing the number of local payment methods (LPMs) they support, which includes expanding geographically. Secondly, Boku plans to add new merchants beyond its current core group, which presently accounts for a significant portion of its revenue. This expansion is in the planning phase, with increased sales activities anticipated from 2026, as evidenced by recent hiring trends. Lastly, Boku is focusing on enhancing its value-added services, such as payment infrastructure improvements, to capitalize on market dynamics where LPMs are becoming more prevalent than traditional card transactions.
According to TipRanks, Leitner is a 5-star analyst with an average return of 15.4% and a 64.16% success rate. Leitner covers the Technology sector, focusing on stocks such as Adyen, Wise PLC Class A, and Worldline.
In another report released on October 7, UBS also initiated coverage with a Buy rating on the stock with a £3.00 price target.