more on that analyst Berenberg
Monitise: Berenberg slashes target
By StockMarketWire | Thu, 14th August 2014 - 14:04
Berenberg Bank has slashed its price target on Monitise (LON:MONI) to 42 pence a share (previously 74 pence) after admitting that valuing the stock isn’t easy, given the start-up nature of the business and the industry in which it operates.
The broker pointed out that, while the company started off as a software developer for mobile banking apps, it has since switched focus towards facilitating more commerce-related services.
Analysts added that the shares have seen a sharp fall in the past six months (down around 40 per cent) on the back of earnings disappointments and a general de-rating by the market.
Berenberg, sticking with its ‘hold’ investment rating, said: "We remain sceptical about Monitise’s ability to reach its 2017 targets.
"In addition, we do not share Monitise’s vision of turning mobile banking applications into a mobile commerce marketplace."
