Shares in Wise PLC (LSE:WISE) fell 9% on Thursday after the money transfer group reported first-quarter underlying income slightly below analysts' expectations, prompting the likelihood of minor forecast downgrades. Underlying income rose 11% year on year to £362 million for the three months to 30 June 2025, or 14% on a constant currency basis.
DK benefits from strong logistics performance and Permian growth, but faces refining margin weakness, regulatory uncertainty and capital-intensive operations.
AMT is likely to gain from the solid demand for wireless connectivity and capital allocation strategy despite customer concentration and consolidation.
With strong cash flows and NGL expansion, PBA remains stable, but challenges like weak share growth and market sensitivity could weigh on returns.
HST to gain from its luxury hotel portfolio, strategic capital recycling and a healthy balance sheet. Macroeconomic uncertainty and high interest expenses ail.
Wise's international payments infrastructure is cheaper and faster than traditional transfers, positioning the company to win a large percentage of future FX volume. The stock is priced at only 25x EBIT, which should shrink in the coming years as management executes its revenue growth strategy. The company's listing is moving to the US from the UK, which could drive multiple expansion.
CCI's extensive portfolio of towers is poised to benefit from the growing demand for wireless connectivity. Yet, customer concentration and substantial debt burden ail.
PLD eyes growth through strategic buys, data center pivots and a strong balance sheet despite leasing delays.
MAC's portfolio of premium shopping centers, focus on omnichannel retailing and the development of mixed-use assets are strengths despite growing e-commerce adoption.
I rate Wise plc a buy, due to its strong moat, efficient growth, and attractive long-term runway in global money transfers. Wise's proprietary infrastructure and word-of-mouth-driven customer acquisition provide a structural cost advantage and support ongoing market share gains. The Wise Platform offers a significant long-term catalyst, with potential to grow from 3-4% to up to 50% of revenue, leveraging existing payment networks.
Diversified portfolio, digital billboard conversions, and strategic buyouts bode well for OUT despite fluctuations in advertising expenses and economic conditions.
Wise plc delivers impressive, steady growth with strong margins and profitability, standing out among fintech peers for its financial discipline and clear business model. The company's upcoming U.S. listing signals a strategic focus on expanding in the world's largest fintech market, where Wise's services have strong potential demand. FY25 results highlight 15% revenue growth, 21% customer growth, robust cross-border volumes, and profitability above long-term guidance, underscoring operational excellence.