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Roller-coaster day for Wise investors after warning

Published 13/06/2024, 14:00
© Reuters.  Roller-coaster day for Wise investors after warning
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Proactive Investors - It has been a roller-coaster day for investors in Wise (ST:WISE) after shares in the payments group dived more than 20% in early deals after it sounded the earnings alarm.

Some semblance of order was restored later in the day as analysts began to run below consensus 2025 numbers provided as guidance by the payment group.

Wise disclosed plans for an underlying pre-tax profit margin of 13-16% in the medium term, which means underlying profits next year will be 19% below consensus.

"While the announced guidance is disappointing at first glance given the price reduction, however, we think the cuts boost confidence in medium-term growth," said Jefferies in a note.

The American bank repeated its 'buy' recommendation and 1,123p price target. In afternoon trading the shares were off 85p at 770.5p.

Read more on Proactive Investors UK

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