/payments

News and resources on payments systems, innovations and initiatives worldwide.

Wise shares tank on Citi analyst note

Shares in money transfer giant Wise fell by more than 10% yesterday after Citi analysts downgraded the stock over "excessive long-term growth expectations".

  9 1 comment

Wise shares tank on Citi analyst note

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

Wise shares closed down more than 10% down at their lowest price since the firm floated on the London Stock Exchange through a direct listing in July.

In a note first reported by CityAM, Citi analysts say that Wise's share price had baked in 20% annual compound revenue growth over the next eight years - far more ambitious than the wider market.

Wise raised £8 billion when it listed last year and, unlike many tech counterparts, has been profitable for years, doubling its profits to £30.9 million in its 2021 fiscal year.

However, its ambitious growth projections have not convinced Citi analysts, prompting yesterday's share sell off.

Sponsored [Upcoming Webinar] Next Gen Payment Processing: How banks can embrace the future

Related Company

Comments: (1)

Ketharaman Swaminathan

Ketharaman Swaminathan Founder and CEO at GTM360 Marketing Solutions

As long as there's a Chinese Wall between the Investment Banking SBU of Citi that issues such guidance about Wise and the Retail & Business Banking SBUs of Citi that compete with Wise in the cross border fund transfer business, what can go wrong, huh?

[Webinar] Trusted Transactions: The Future of Risk-Based AuthenticationFinextra Promoted[Webinar] Trusted Transactions: The Future of Risk-Based Authentication