Shore Capital Sees ‘Significant Upside’ for CAB Payments After Abu Dhabi Approval

Shore Capital analyst Vivek Raja said in a note that CAB Payments’ latest regulatory milestone in the Middle East adds to the company’s global footprint and strengthens its long-term growth outlook. 

The firm maintained its 100p fair value estimate on the stock and highlighted “significant share price upside potential” from current levels. 

CAB Payments is a “HOUSE Stock” (a company for which Shore Capital acts in an advisory capacity).

CAB Payments shares trade around 51p, near their historical low. The firm, a specialist in foreign exchange and cross-border payments across more than 500 FX pairs, has secured in-principal regulatory authorisation from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Markets for a Category 2 licence. 

The new licence will provide a regional hub facilitating FX and payment flows between the Middle East, Europe, Asia, and Africa.

Shore Capital said the addition of the Abu Dhabi operation, known as CAB Global Markets, “raises the strategic moat around the business,” and reinforces the company’s plan to develop localised relationships across key markets. 

Arif Khan has been appointed as Senior Executive Officer to lead the new subsidiary, bringing experience in regional financial markets and ties to sovereign and development finance institutions.

The firm noted that the expansion had already been budgeted for, with no immediate change to forecasts ahead of full authorisation.

“This is another encouraging announcement to show the progress CAB Payments has made over the past two years in its strategic reorientation,” Shore Capital said, citing efforts to derisk revenue, reduce costs, and broaden capabilities.

CAB Payments trades on a 2025 P/E of 8.1x and 5.9x for 2026, valuations the broker said “do not fairly reflect the business’s long-term growth prospects.”