Wise Has Long Runway to Continue Capturing Market Share

JPMorgan initiated coverage of Wise plc (LON: WISE) on Monday, assigning it an Overweight rating and a price target of 1,242p. 

The bank cited the company’s strong position in the cross-border payments market and its potential for continued growth.

“Wise is a technology company focused on cross-border payments,” JPMorgan analysts wrote, noting that the firm has been “gaining share by reducing customer friction in a historically slow and expensive market.” 

After around 15 years in operation, JPMorgan says Wise has already captured approximately 5% of the personal and 1% of the business cross-border market, which together total roughly £140 billion annually.

For comparison, JPMorgan highlighted that Adyen, another payments company rated Overweight, has captured less than 5% of global processed payment volume after 19 years in business. 

Wise's relative success is said to underscore its ability to disrupt traditional payment channels.

JPMorgan sees a “long runway for Wise to continue capturing market share as it further invests in growth,” forecasting mid-to-high-teens percentage growth in both sales and gross profit. 

The analysts also pointed to Wise’s Platform business as a key driver of future expansion, with increasing market appreciation of this segment expected to support valuation growth.

Wise shares are down over 9% this year after a strong rise at the back end of 2024 and into January 2025. 

According to TradingView, out of 19 analysts covering the stock, 11 have a Buy rating, six a Hold rating, and two a Sell rating. The analyst consensus price target is 1,136p, suggesting a potential 20% upside.