The smartphone advertising specialist completed two acquisitions in the second half of 2017, Adinovation and Tremor DSP.
These have accelerated growth in key geographies, enhanced its technical capabilities and delivered material upgrades to estimates said Berenberg.
Consensus estimates for earnings per share have risen by 110% since the start of 2017, with acquisitions becoming an increasingly important driver.
Berenberg estimates Taptica can spend up to US$50mln with the boost of the fund raise and deployed wisely this might spark a further 20-29% hike to its earnings estimates.
Europe and Asia-Pacific
The broker believes Taptica will look to Europe and Asia-Pacific and for companies with a similar profile to Tremor to fill both geographic and technological gaps to create an end-to-end mobile advertising solution.
Tremor is already in profit a year ahead of expectations and is a blueprint for similar acquisitions in the future.
“With ample firepower and a growing track record of successful M&A transactions, we believe M&A will continue to drive material upgrades over the coming years,” said the house.
Organically too, Berenberg is upbeat.
A number of tailwinds are helping its platform, it says, including a shift towards mobile-orientated advertising; an increasing share of social media on mobile and a performance-based pricing model.
Berenberg expects revenues in 2017 of US$210mln, rising to US$330mln and US$360mln over the next two years.
Underlying profits over the same timeframe are US$33mln, US$38mln and US$43mln.
The price target is 600p, compared to 438p currently.