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BOKU: Share Buybacks Will Drive Future Earnings Power And Market Expansion

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

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BOKU
AnalystConsensusTarget
Not Invested
Published 09 Feb 2025

Update shared on 07 Dec 2025

Fair value Increased 1.47%
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AnalystConsensusTarget's Fair Value
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1Y
7.0%
7D
-2.0%

Analysts have lifted their price target on Boku slightly, citing incremental improvements in fair value estimates and a modest uptick in expected future valuation multiples that together support a small upward revision in projected shareholder returns.

What's in the News

  • Boku reaffirmed its full year 2025 earnings guidance, expecting year on year revenue growth at least in line with the 27% growth achieved in the first half. This implies full year revenue in line with upgraded consensus following the July 24, 2025 trading update (Key Developments).
  • The company reiterated its medium term objective for organic revenue growth to exceed 20% on a compound annual growth basis, which underpins management confidence in the durability of its growth profile (Key Developments).
  • Between January 1 and June 30, 2025, Boku repurchased 5,815,000 shares, or 1.95% of its share capital, for £12.3 million as part of its ongoing buyback programme (Key Developments).
  • In total, Boku has now completed the repurchase of 9,815,000 shares, representing 3.29% of its share capital, for £21.74 million under the buyback first announced on November 18, 2024. This highlights continued capital returns to shareholders (Key Developments).

Valuation Changes

  • Fair Value Estimate has risen slightly, moving from 3.21x to 3.26x, reflecting a modest uplift in the intrinsic valuation assigned to Boku.
  • Discount Rate has edged up marginally, increasing from 7.03% to 7.05%, a small change that modestly tempers the impact of higher fair value assumptions.
  • Revenue Growth Assumption remains effectively unchanged at around 22.6% compound annual growth, indicating stable expectations for Boku’s top line trajectory.
  • Net Profit Margin Assumption is essentially flat at about 15.1%, suggesting no material revision to profitability expectations.
  • Future P/E Multiple has risen slightly, from 46.5x to 48.1x, signaling a modestly higher expected valuation multiple on forward earnings.

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