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Berenberg initiates coverage on Bango at 'buy'
4th Feb 2022 09:10
(Sharecast News) - Analysts at Berenberg initiated coverage on software firm Bango on Friday with a 300.0p target price and 'buy' rating, stating the stock offered "bang for your buck".
Berenberg said Bango, an alternative payments and purchase behaviour targeting platform, more often than not gets viewed as a subscale direct carrier billing business when compared to its UK-listed peer, Boku.
However, the analysts stated that while Bango is smaller by market share, it differentiates itself through its subscription bundling service offered to network carriers and the ability for both physical and digital goods to be transacted through its platform.
The German bank said with its payment data now being used to fuel a new advertising tool for mobile app developers, which was gaining rapid adoption, Bango has broadened its offering and enlarged its revenue opportunity.
"We expect the company to continue compounding sales at a 30% compound annual growth rate, but for earnings growth to outpace this significantly, as recent investment in its platform pays off," said Berenberg. "Bango trades on 13x 2023 EV/EBITDA, a circa 30% discount to Boku and other global payment peers."
Berenberg said Bango, an alternative payments and purchase behaviour targeting platform, more often than not gets viewed as a subscale direct carrier billing business when compared to its UK-listed peer, Boku.
However, the analysts stated that while Bango is smaller by market share, it differentiates itself through its subscription bundling service offered to network carriers and the ability for both physical and digital goods to be transacted through its platform.
The German bank said with its payment data now being used to fuel a new advertising tool for mobile app developers, which was gaining rapid adoption, Bango has broadened its offering and enlarged its revenue opportunity.
"We expect the company to continue compounding sales at a 30% compound annual growth rate, but for earnings growth to outpace this significantly, as recent investment in its platform pays off," said Berenberg. "Bango trades on 13x 2023 EV/EBITDA, a circa 30% discount to Boku and other global payment peers."