Analysts Lift Boku Price Target as New Partnerships and License Drive Up Valuation

Narrative Update: Boku Analyst Price Target Adjustment

Analysts have raised Boku’s fair value estimate from $2.99 to $3.21. This change reflects a more favorable outlook, even though there were slight adjustments in key financial assumptions.

What's in the News

• Boku has partnered with Canva to help expand Canva's platform across Asia and Europe by integrating localized payment methods. This makes creative tools more accessible in regions where traditional card usage is low. Initial success includes the launch of MoMo, Vietnam's top digital wallet, with further integrations planned for 2025. (Key Developments)
• Boku was granted a Payment Institution license by the Central Bank of Brazil, enabling it to operate as a Payment Institution and E-money Issuer and to participate in Brazil's Open Finance ecosystem as a Payment Initiator Service Provider. (Key Developments)
• With its new license, Boku plans to introduce Pix Automatico to merchants in early 2026, allowing recurring payments for streaming, subscriptions, and digital goods. This initiative aims to support broader financial inclusion in Brazil. (Key Developments)
• As Pix becomes the dominant payment method in Brazil, Boku's expansion allows more consumers, especially the unbanked, to access digital payments. This streamlines recurring payments and supports evolving consumer payment habits. (Key Developments)

Valuation Changes

• The Fair Value Estimate has risen slightly from $2.99 to $3.21.
• The Discount Rate has decreased marginally from 7.12% to 7.03%.
• The Revenue Growth Forecast has edged down slightly from 22.76% to 22.64%.
• The Net Profit Margin has fallen from 18.25% to 15.12%.
• The Future P/E Ratio estimate has increased from 43.56x to 47.46x.