Investing.com — Barclays initiated coverage of ’s U.S.-listed shares at “overweight” on Tuesday with a price target of $15, while reiterating the same rating on the London-listed stock with a target of £11.40, describing the payments company as a “high-quality growth compounder” ahead of a quarterly update.
The broker set a $15 target on Wise Group, which completed a dual listing in May and shifted to the U.S. GAAP reporting.
The London-listed shares closed at £9.63 on July 3 against an unchanged 12-month target of £11.40. Barclays values both share classes at 24 times CY27 earnings per share.
Wise is scheduled to publish its first-quarter fiscal 2027 trading update on July 16. Barclays forecast net revenue of $698 million for the period, about 1% above consensus, on the basis of total payment volume growth of 28% and continued customer momentum tracked through Apptopia engagement and download data through May 2026.
The broker said it expects cross-border take rate to fall roughly 1 basis point in the quarter, in line with company commentary, while card and other revenue should continue to outpace cross-border revenue, producing net revenue growth of approximately 22%.
For fiscal year 2027, Barclays modeled net revenue growth of 18.3%, the midpoint of company guidance of 15% to 20%, and an income-before-tax margin of 25.8%, at the upper end of the company’s 20%-to-25% target.
In fiscal year 2026, Wise reported net revenue growth of 19.3%, supported by strength in ancillary services, particularly card revenues.
Cross-border volume grew 31.5%, aided partly by foreign exchange, while the take rate fell 6 basis points year on year due to strategic price increases, the document showed.
Barclays cited the scaling of Wise’s Platform business, ongoing market share gains and “structural expansion across both the Personal and Business segments” as underpinning its “overweight” rating, adding that “investments into its infrastructure and pricing will further strengthen the moats around its business.”
Barclays flagged risks as skewed to the upside for the July update. The broker’s upside scenario assumes “stronger and faster than expected success” on the Platform segment coupled with continued market share gains in Personal and Business.
The downside case centers on intense competition reducing market share gains and softer earnings momentum.
The analysts noted that London-listed shares were flat in the second quarter despite strong earnings performance, with share price weakness driven by newsflow around anti-money-laundering concerns.
Barclays forecast adjusted EPS of 43.5 pence for fiscal year 2027, rising to 49.0 pence in fiscal year 2028.