Bango PLC’s (LON:BGO) marketplace product offers “a unique solution to increase advertising efficiency” according to analysts at house broker Liberum, who initiated coverage on the stock on Friday with a ‘buy’ rating and a 260p target price.
In a note, the broker said Bango’s key online payments and data monetisation products will benefit from a “rising consumer spend on digital content, and from merchants wanting to increase their share of this spend through targeted advertising”.
“The value of online payments Bango processes has been doubling every year. Data monetisation revenues are surging, and are expected to be the biggest driver of future growth. After 70% revenue growth and c.800% [earnings] growth in 2020, we expect continued strong growth in future years as well”, Liberum said.
The broker also said valuations of the firm are currently at a 50-60% discount to global peers in the payments and ad tech segments, but they believed these discounts are “likely to narrow as the market becomes more aware of the unique offering and the strong growth potential of Bango’s data monetisation business, the increasing predictability and growth in the payments business, and the rapidly rising levels of profitability and cash flow of the company overall”.
Shares in Bango were up 1.5% at 183.2p in mid-morning trading.