Shares of Rolls-Royce have experienced remarkable growth over the past few years, reaching nearly £13 per share after starting 2026 on a strong note. This impressive performance has resulted in a three-year return exceeding 1,100%. While this growth is typically associated with high-flying technology stocks, analysts are now focusing on another UK company that they believe could deliver significant returns in the coming years.
Fintech Firm Boku Gains Attention
The company in question is Boku (LSE:BOKU), a fintech firm listed on the AIM with a market capitalization of £668 million. Boku facilitates connections between merchants and over 200 local payment methods and wallets, enabling customers in 60 countries to make purchases using their mobile devices. The company’s mission is to “simplify global expansion for our merchants by providing seamless access to the world’s most popular payment methods.” Boku collaborates with major players such as Netflix, Spotify, Amazon, and Google, highlighting its prominent position in the fintech space.
Boku has demonstrated robust revenue growth, with projections indicating an increase from $56.4 million in 2020 to an expected $152 million in 2023. Notably, the company is now profitable, with net profit anticipated to rise by 25% this year, exceeding $34 million. Growth in bundled services, where digital offerings like Netflix or Spotify are packaged with mobile or broadband plans, is particularly strong.
The long-term potential for Boku appears significant, especially in regions such as Southeast Asia, where digital wallet adoption is outpacing that of credit cards. Approximately 60% of Boku’s revenue comes from the Asia Pacific region, and the firm has recently gained access to Brazil’s popular instant payment system, Pix. Boku has committed to achieving compound annual revenue growth of over 20% in the medium term, alongside margin expansion.
Strategic Initiatives and Market Position
To address challenges related to cross-border financial transactions, Boku has opened an innovation hub in Singapore. The company is also piloting stablecoin payment rails, showcasing its commitment to staying at the forefront of technological advancements in the fintech sector. According to Stuart Neal, Boku’s CEO, “With increasing volumes across our network, we are prioritizing operational efficiency and building a platform with the capacity to scale significantly.”
Despite a 68% increase in share price since the beginning of 2024, Boku’s stock is considered undervalued, prompting an ongoing share buyback program. Analysts have noted that the stock is currently trading at 27 times forward earnings, which is reasonable for a rapidly growing fintech company. All six brokers covering Boku have rated it as a “Buy,” with an average price target of 330 pence, representing a potential upside of 47% from the current price of 223 pence.
Boku does face competition from other fintech companies looking to capture the lucrative local payment method market, including Dlocal, a larger rival based in Uruguay with a market capitalization of $4.2 billion.
Investors are increasingly taking notice of Boku’s progress and its evolving business model, which has shifted significantly from its early focus on phone billing to a wider array of local payment solutions, particularly in Asia. While some investors may hesitate to re-enter after previous positions, many analysts suggest that now might be an opportune moment to consider a stake in this fast-growing fintech firm.
As the fintech landscape continues to evolve, Boku’s innovative strategies and strong growth prospects could position it well for future success, making it an intriguing option for investors looking to diversify their portfolios.
