CAB Payments Shares: This Analyst Sees Significant Upside Potential

CAB Payments (LON: CABP) shares could offer substantial upside, according to Shore Capital analyst Vivek Raja in a note this week. 

The firm reiterated its 100p fair value estimate on “House Stock” CABP, which is more than double the current 41p share price.

CAB Payments, a specialist in FX and cross-border transactions, has secured approval to open a U.S. representative office in New York. 

Shore Capital described the move as “another endorsement of CABP’s ability to execute whilst operating in a stringent regulatory environment,” highlighting the company's progress under its reoriented strategy.

The licence, granted by both the Federal Reserve and the New York State Department of Financial Services, enables the firm’s subsidiary, Crown Agents Bank Limited, to extend its presence into North and South America. 

“The New York representative office should improve CABP’s access to USD liquidity by adding local clearing partners and will act as a regional hub,” Raja wrote, adding this also increases the firm’s “optional growth” opportunities.

The analyst see no material near-term costs arising from the office, noting infrastructure commitments were already met. 

He added that the development strengthens the company’s competitive position by expanding its regulatory moat, alongside existing UK and European permissions.

“CABP trades on a P/E of 6.1x in FY25F and 4.4x in FY26F, which is not a fair reflection of the business’s long-term growth prospects,” the firm said. 

With structural tailwinds and a rising strategic relevance, Shore Capital believes the stock remains undervalued.