TEUM price target $3.50...Pareteum Corporation... focus is on cloud communications; the company is also involved in Blockchain technology to its billing and settlement services. This newest service capability enables Pareteum customers to participate in the transformational 'Digital Economy Monetization to the Cloud' and now accept and process Bitcoin, Ethereum, Litecoin, Airtokens and other forms of cryptocurrencies.
May 25, 2018 http://www.taglichbrothers.com/equityuniverse/pareteum.php
Pareteum Corporation, headquartered in New York, NY, is a cloud communications platform company. Cloud communications
involves the integration of multiple communication methods and services that can be accessed over the Internet and are handled and
hosted by a third-party (such as Pareteum) through the cloud.
Key investment considerations:
We are initiating coverage of Pareteum Corporation with a Speculative Buy rating and twelve-month price target
of $3.50 per share.
Worldwide spending on public cloud services and infrastructure is forecast to achieve a five-year compound
annual growth rate (CAGR) of 21.9% with public cloud services spending totaling $277 billion by 2021. One of the
industries projected to grow the fastest is the telecommunications industry with a 23.3% CAGR over the five year
period. Software as a Service (such that Pareteum offers) is projected to be the largest cloud computing category,
capturing nearly two thirds of all public cloud spending in 2018.
At March 31, 2018, the company’s 36-month backlog increased to $200 million from $147 million at December 31,
2017. Over the past year, Pareteum has managed to convert over 100% of its backlog into revenue. In 1Q18, the
company has increased by 94% the number of connections using its technology to 2.2 million compared to the
year-ago period, and 30% since December 31, 2017.
Pareteum’s 36-month contractual backlog and growing number of connections using its technology suggest strong
revenue growth through our forecast horizon. We project strong revenue growth will result in $11.2 million
EBITDA in 2019.
For 2018, we project a 63.2% increase in revenue to $22.1 million and a net loss of $3.8 million or $(0.07) per
share. The increase in revenue should be supported by the company’s 36-month backlog.
For 2019, we project a 95.4% increase in revenue to $43.2 million and net income of $9 million or $0.14 per share.
Growth should be driven by a doubling in deployments that are scheduled for 2019.