No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Analysts at Berenberg cut their target price on software firm Boku from 300p to 200p on Monday as they reduced their forecasts following a weakerthanexpected firsthalf update, though they also said their investment thesis remained intact and reiterated their 'buy' recommendation.
Boku warned that FY26 revenue and profits would be materially lower than consensus due to three operational headwinds, prompting cuts to revenue forecasts of 10%, 16% and 20% for FY26-28, and to adjusted underlying earnings estimates of 22%, 27% and 30%, respectively.
In H1, Boku said total payment volume came in at $8.3bn, below the $9.2bn consensus, though still up around 12% yearonyear, as the firm said its performance was held back by a key merchant shifting to dual sourcing in one major region, the suspension of two direct carrier billing connections in another market, and delays to merchant onboarding and new connection launches. Revenues rose 5% to $66.5m, below the $72.1m consensus, while adjusted EBITDA came in at $19.3m, missing expectations of $23.2m.
Boku now expects FY26 revenues of $135m to $142m, versus the $155m consensus, implying yearonyear growth of 5 to 10%, while adjusted EBITDA was forecast to be $38m to $42m, compared with $49.6m expected.
Berenberg said strategic progress continued in H1, highlighting Boku's contract with Stripe as a potential source of significant incremental volume. It added that the lower end of guidance reflected a "worstcase" scenario, making the recent shareprice fall an attractive entry point.
The German bank added that Boku now trades on a 18.3x FY26 price-to-earnings ratio (excash) and a 4.1% FY26 freecashflow yield.
Reporting by Iain Gilbert at Sharecast.com
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.