Wise: Strong Operating Momentum, Margin Upside, and Resilient Unit Economics Underpin Buy Rating

Jefferies analyst Hannes Leitner maintained a Buy rating on Wise PLC Class A today and set a price target of p1,231.00.

Hannes Leitner has given his Buy rating due to a combination of factors that highlight Wise’s strong operating momentum and earnings quality. The company delivered underlying income growth of 21% year over year at constant currency, with no adverse FX effect and a solid 10% sequential increase, coming in about 3% ahead of both Jefferies and consensus forecasts. Management reaffirmed full-year guidance for underlying income growth of 15–20%, and at the same time raised the profitability outlook, now expecting profit-before-tax margins at the upper end of prior indications, even after factoring in dual-listing expenses. This effectively points to an underlying margin closer to the high teens, underscoring Wise’s ability to scale efficiently while absorbing incremental costs.

The outperformance was underpinned by stronger-than-expected customer and volume trends, with active customer numbers surpassing estimates by roughly 3% and total payment volumes growing 26% in constant currency, slightly ahead of market expectations. Importantly, the cross-currency take rate remained stable quarter on quarter around the low-50-basis-point level, dispelling concerns about pricing pressure and supporting revenue visibility. Taken together, the growth beat, margin expansion, and resilient unit economics reinforce the investment case for Wise as a structurally growing, profitable FinTech platform, which in Leitner’s view justifies a Buy recommendation at current levels.

In another report released on January 16, UBS also maintained a Buy rating on the stock with a p1,240.00 price target.