Jefferies Group lowered shares of Monitise Plc (LON:MONI) to a hold rating in a research report released on Wednesday morning. Jefferies Group currently has GBX 15 ($0.24) price objective on the mobile payments company’s stock, down from their previous price objective of GBX 36 ($0.57).
"Jefferies comment that the CEO (Buse) is fixated on the EBITDA breakeven projection is very telling. That is what corporate organization managers are able to do. Reorganize, combine, eliminate jobs; lower costs; all controllable stuff by the boss. Who is selling anything? It appears no one with growth being the problem and the opportunity in a new market. No message because of no results"
We'd prefer to believe that EB & team are focused on transformation activities first ... growth will follow:
- Geographic prioritization (exit Asia Pacific, India) - Product transformation (focus investment on target platforms & functionality for early adopters) - Organization globalization (who does what where vs. everyone does everything) - Board simplification (eliminate conflicts by removing Visa Europe, Al)
We can't sell product that does not yet exist. Wait for deployment announcements for...
- Yaap Digital (Santander, Telefonica, Caixa) - Virgin Money - unnamed BPO - MoneyPass - unnamed Top 10 US FI - Societe Generale
Functionality required for the above will be very attractive to fast-followers. Growth will soon be important as cost cutting is not a long term strategy