Berenberg raises Boku stock price target to GBP3.00 on differentiated offering

Published 01/09/2025, 08:00
Berenberg raises Boku stock price target to GBP3.00 on differentiated offering

Investing.com - Berenberg raised its price target on Boku Inc (LON:BOKU) to GBP3.00 from GBP2.80 on Monday, while maintaining a Buy rating on the payment processing company.

The research firm cited Boku’s "high-quality and differentiated offering" in what it describes as an "increasingly commoditised payment-processing industry." Berenberg noted that Boku focuses on local payment methods (LPMs) through two distinct business segments.

Boku’s established direct carrier billing (DCB) business represents approximately 65% of the company’s revenues and holds a dominant share in a stable market, according to Berenberg. This segment is characterized as having lower growth compared to the company’s other offerings.

The remaining 35% of Boku’s revenue comes from its digital wallet and account-to-account (A2A) offerings, which Berenberg describes as "more nascent, higher-growth" services operating in large but increasingly competitive markets.

Berenberg concluded that despite facing "significantly larger competitors," Boku maintains a "sufficiently differentiated offering" through its focus on local payment methods, highly customized services, and advanced cross-border capabilities.

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