The company’s house broker issued a note to clients reiterating its ‘strong buy’ and 260p target price after the digital payments group welcomed investors to a strategy day, where it described the growth potential across its markets.
In particular, Bango highlighted the massive revenue opportunities in its two new and extremely fast-growing businesses – platform licenses and data monetisation, which when allied to the payments business are seen as having the potential to generate hundreds of millions of dollars of revenue in future years.
“Through its Platform licenses Bango provides telcos with a complete solution, that helps them better monetise their assets through partnerships with content providers.
The five platform license contracts that Bango has already signed are expected to deliver annualised recurring revenues of at least US$7mln by 2023, with many other deals under discussion, Liberum analyst Janardan Menon noted.
“On the data monetisation side, advertising spend using Bango Marketplace is surging across multiple verticals.”
The analyst said the recent pullback in the share price “further increases the attractiveness of the stock”.