Wise: Q2'F27 trading update: Guidance upgrade but expect limited change to consensus

Wise has posted a Q2'F27 trading update with net revenues coming in 1.6% ahead of company-collated consensus and FY27 net revenue guidance raised to the top of the mid-term range, albeit with consensus already there. Cross-border revenues were in line, but Card & Other and Net Interest Income provided the upside to consensus. Clouding the report was the announcement of ~$30m of one-off costs impacting H1 profitability. While we do not expect upgrades to FY27 consensus estimates (likely some small cuts on the one-offs), we see the Q2 print as solid without any major variations to our existing Overweight thesis. We maintain our Overweight rating and raise our price target to $17.70 or £13.30 (June 2028), based on 20x calendarised 2028 P/E, from $17.30 or £13.00 previously.