Paradigm Capital analysts released a research update on Wishpond Technologies Ltd, saying the company is showing “no signs of slowing down in 2022.”
“We believe WISH is well positioned for outperformance in 2022 given leading organic growth of ~40%, investment in doubling the sales force and a pipeline of M&A opportunities,” the analysts wrote.
“Shares have sold off with the broader tech sector and are trading at attractive levels. We believe shares will rerate higher as the company scales this year,” they added.
READ: Wishpond reports 90% revenue growth in third quarter 2021 driven by organic growth from incremental investments
The Paradigm analysts noted that Wishpond’s stock is down about 49% from its 52-week high, generally owing to a broader sell-off in the technology space as interest rates tick higher.
They said, however, that strong fundamentals should overshadow any headwinds from broader market valuation as the company continues to execute on profitable growth.
“We expect revenue of $14.6 million and $22.6 million for 2021 and 2022, respectively, representing growth of 54.8%,” the analysts said.
“There is also an upside if the company is more aggressive in its M&A strategy and we also expect the margins to improve as WISH integrates its recent acquisitions to gain synergies.”
As well, the analysts said they believe long-term trends will be supportive of increasing the use of digital services within small and medium-sized businesses (SMBs) where Wishpond has an opportunity to establish itself as a dominant player in marketing technology.
Paradigm Capital analysts maintained their ‘Buy’ rating and 12-month target price of $3.25 per share on Wishpond stock.
Contact Sean at sean@proactiveinvestors.com