Mogo Inc T.MOGO

Alternate Symbol(s): MOGO

Mogo Inc. is a Canada-based digital finance company. The Company provides simple digital solutions to help them in building wealth and achieve financial freedom. Its trade app, MogoTrade, offers lowest cost way to invest while making a positive impact with every investment. The Company also offers digital loans and mortgages. Through its wholly owned subsidiary, Carta Worldwide, the Company also offer a digital payments platform that powers card programs for both established global corporations and fintech companies in Europe and Canada.

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Post by ndiamondon Feb 11, 2021 7:29pm

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Post# 32548090

Raymond James raises target to $15.00

MOGO INC. (MOGO-TSX | C$11.43)

Acquires 20% of Coinsquare + Call Option to go to 40%+

RATING

Outperform 2

TARGET

C$15.00

SUITABILITY

High Risk/ Growth

MARKET CAP (MLN)

C$629

ESTIMATES

2021E EPS C$(0.32)

2022E EPS C$(0.16)

We believe this is a great deal with positive valuation implications. Mogo sees crypto as a key part of next-gen financial services, so they are vertically integrating on crypto, acquiring a partner they want to own in a de-risked way. Best comparable today (before any Coinbase IPO) is Voyager Digital. Coinsquare trading volume was $525+ million in January 2021, revenues ~$6.5 mln (our estimate) and $500+mln in AUM as at February 9, 2021. Voyager Digital said its AUM expanded to $800 mln as of Feb 4. Based on where Voyager is trading, Coinsquare could be worth ~$1.2 bln if it were public today. And Mogo 20% stake could be worth ~$240 mln plus they now have a call option to go to 40% at ~ a pre-money valuation of Coinsquare ranging from $250-350 mln. The transaction is expected to close in the first quarter of 2021.