Analysts Canaccord’s Doug Taylor cut his Mogo Finance Technology Inc. target by $1 to $11 with a “speculative buy” rating, while Raymond James’ Steven Li lowered his target to $13.50, the current average on the Street, from $15 with an “outperform” rating.
“Mogo reported Q2 results which were ahead of expectations,” Mr. Taylor said. “The 16-per-cent move in the stock post-earnings was driven, in our view, by management’s updated outlook for the pace of growth exiting Q4 and into 2022. These numbers suggested upside to the Street’s prior model and were a vote of confidence in the expected launch timing and contributions from upcoming products such as the equity trading platform. What is not at this point reflected in the financial performance is the $110-million invested (so far) in Coinsquare which, given the activity levels in cryptocurrencies, has quickly become a key asset of Mogo. Our $11 target (from $12) is based on expectations that are now better grounded by management’s guidance, offset by a more conservative valuation for Coinsquare. Mogo’s gearing to volatile cryptocurrencies creates a high risk/high reward return distribution which informs our SPECULATIVE BUY rating.”