Proactive Investors - Shares in Wise PLC (LON:WISEa) are down more than 15.5% this morning after analysts flagged concerns over the impact of falling interest rates in the near term.
Calling its guidance "disappointing", analysts at Jefferies said forecasts for underlying total income of between £1.35 billion and £1.41 billion in 2025 was 2% below consensus.
Hannes Leitner, analyst at the US bank, argued that net interest income, which tracks the money generated from deposits, is at risk of "tailwinds" due to concerns that the group is "using interest income to fund its core business, which is transitory”.
"While the announced guidance is disappointing at first glance given the price reduction, however, we think the cuts boost confidence in medium-term growth,” Leitner said.
Wise issued pre-tax profit margin guidance of between 13% and 16% or £175 million to £225 million, which was down by around 19% when compared to the City's estimates of 18% or £247 million, Jefferies added.
It comes despite Wise having reported pre-tax profits trebling in 2024 to £242 million.