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Highlights

  • BUY consensus with a 12-month average price target of GBp 283.6, implying a 33.15% upside

  • Jefferies and Berenberg maintain BUY ratings, with target prices of GBp 250 and GBp 280 respectively

  • FY24 revenue rose 20% organically to $99.3M, driven by 56% growth in digital wallets and A2A payment services

Boku Inc (LSE:BOKU), the London-listed global payments platform, has retained BUY ratings from leading analysts Alex Short (Berenberg) and Hannes Leitner (Jefferies), who see significant upside potential, likely to be driven by Boku’s revenue diversification and accelerating adoption of local payment methods.

Boku’s shares last traded at GBp 213, with an average 12-month target price of GBp 283.6, reflecting a  33.15% upside. Alex Short of Berenberg reaffirmed a BUY rating with a target price of GBp 280, suggesting a 31.46% gain. Meanwhile, Jefferies analyst Hannes Leitner issued a BUY recommendation, valuing the stock at GBp 250—a 17.37% upside from current levels.

FY2024 Financials Reflect Resilient Operating Model

For the full year ended 31 December 2024, Boku reported total group revenues of $99.3 million, up 20% organically from FY2023 and 24% at constant currency. The topline growth was driven by diversification beyond its core Direct Carrier Billing (DCB) segment.

DCB revenues rose 11% to $73.3 million, with DCB bundling growing nearly 50%. However, the standout performance came from Local Payment Methods (LPMs)—including digital wallets and account-to-account (A2A) payments—which grew 56% to $26.0 million. This segment now contributes 26% of total group revenues, up from 20% a year ago, reaching 30% by year-end 2024.

Adjusted EBITDA for FY2024 grew 22% year-on-year to $31.4 million, maintaining a margin of 31.6%. This reinforces management’s commitment to keeping margins above 30% even as it continues to invest in product development and global expansion.

Despite higher EBITDA, operating profit fell to $6.2 million (FY2023: $9.7 million) due to increased FX losses and higher share-based compensation tied to a rising share price. However, Boku has a positive financial footing, with total group cash rising 18% to $177.3 million and zero debt.

2025 Outlook

The company has entered FY2025 on a positive footing, with a promising pipeline and early indicators of sustained demand for localised payment solutions. Management expects revenue growth to exceed 20% for FY2025, surpassing consensus estimates, alongside an EBITDA margin above 30%.

Medium-term expectations also remain bullish, with the company targeting over 20% CAGR in revenue and further margin expansion from FY2026 onward.