Wise: Initiating Coverage With a GBX 520 Fair Value Estimate and No-Moat Rating

We are launching coverage of Wise with a fair value estimate of GBX 520 per share, no moat, and a stable moat trend. We believe that Wise is the low-cost provider in an industry that is commoditizing quickly. However, we do not believe that Wise has fully entrenched its competitive positions yet, which would warrant a narrow economic moat. Wise has a first-mover advantage and is gaining scale as a result of it, which could ultimately result in us awarding a narrow or wide economic moat rating in the future. At this stage, we believe that the uncertainty around the replicability of its business model does not warrant such a rating just yet. Our Uncertainty Rating is High, putting Wise into 2-star territory.