Moonpig Group Plc's (LSE:MOON) recent trading performance highlights the resilience of its core brand and the scope for further growth, that's according to analysts at RBC Capital Markets.
Analysts, in a note, said the group delivered 9.4% organic revenue growth at the Moonpig brand in the first half, despite pressure on consumer spending. But RBC believes this performance has not been reflected in the current valuation.
The analyst highlighted growth in customer acquisition and higher attach rates as key drivers. Moonpig customers buy an average of 23 cards per year, with only 3.5 currently purchased through the platform.
RBC said increasing wallet share remains a material opportunity.
The Canadian bank also pointed to Moonpig’s data advantage. The group holds around 107 million customer reminders, allowing marketing to be targeted at periods of high purchase intent. This reduces reliance on continuous advertising compared with competitors.
Internationally, the broker said Greetz in the Netherlands is improving following platform integration and could develop into a second Moonpig over time. Australia was identified as the group’s main overseas focus, with progress being made on customer acquisition costs.
RBC reiterated its 'outperform' rating and 300p price target.