from LSE: BTIG says...
Today 13:04
Monitise
Reiterating BUY After FY14 EBITDA Beats Revised
Estimate, Revenues In-Line, Guidance Reiterated
Monitise (AIM: MONI; OTC: MONIF) this morning reported a
better-than-expected full-year 2014 EBITDA loss and revenue
for the year that was in line with the revised guidance issued on
July 8, which should help to address some investor concerns
after the company this year twice revised its outlook lower.
However, investors in MONIF are much more focused on the
future trajectory of the company’s growth, whether the
subscription-based model to which it shifted earlier this year is
gaining traction, the role that it will play in the global growth of
mobile money, and how well positioned it is to be acquired.
MONIF this morning reiterated its guidance, including revenue
growth of 25% in FY15 and the achievement of EBITDA
profitability in FY16 with revenue growth accelerating.
MONIF announced an agreement to
develop mobile banking applications for Santander, and it also
announced that it will connect to IBM hosting facilities in North
Carolina, giving it a hub that should aid its efforts to scale its
business. We believe the IBM news will further encourage
some investors’ view that the tie-up will ultimately lead to an
acquisition of MONIF by the technology giant.
We reiterate our BUY recommendation and price target of
92p on Monitise based on 12x FY18 EBITDA of £200mm
discounted back at 8%. We believe MON)’s scalability and
alignment with the growth of mobile money should enable it
to meet its goals of 200mm+ users, £2.50 ARPU and 30%+
EBITDA margins and by June 2018.
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92p = $1.49
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