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Wise shares tank on Citi analyst note

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".

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.

Comments: (1)

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 12 January, 2022, 10:44Be the first to give this comment the thumbs up 0 likes

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?