Morningstar

Wise: Initiating Coverage With a GBX 520 Fair Value Estimate and No-Moat Rating

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Securities In This Article
Wise PLC Class A
(WISE)

We are launching coverage of Wise WISE with a fair value estimate of GBX 520 per share, no moat, and a stable moat trend. We believe that Wise is the low-cost provider in an industry that is commoditizing quickly. However, we do not believe that Wise has fully entrenched its competitive positions yet, which would warrant a narrow economic moat. Wise has a first-mover advantage and is gaining scale as a result of it, which could ultimately result in us awarding a narrow or wide economic moat rating in the future. At this stage, we believe that the uncertainty around the replicability of its business model does not warrant such a rating just yet. Our Uncertainty Rating is High, putting Wise into 2-star territory.

The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.

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About the Author

Niklas Kammer, CFA

Equity Analyst
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Niklas Kammer, CFA is an equity analyst, Europe, for Morningstar*. He covers European financials. His coverage includes Nordic and UK banks, payment services providers, other fintechs and exchange groups.

Before joining Morningstar in 2016, Kammer interned on the equity research team at Rabobank Netherlands and in the corporate finance department at Kempen & Co. At Morningstar, he worked as an associate equity analyst covering the oil and gas sector before moving into his current role as an equity analyst covering financials.

Kammer holds a bachelor’s degree in economics and business from University of Amsterdam and a master’s degree in finance and investments from the Rotterdam School of Management. He is also a CFA charterholder.

* Morningstar Holland BV (“Morningstar”) is a wholly owned subsidiary of Morningstar, Inc

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