Globe says Palmer rates Mogo "buy" in new coverage Globe says Palmer rates Mogo "buy" in new coverage
The Globe and Mail reports in its Wednesday edition that BTIG analyst Mark Palmer began coverage on Mogo ($7.66) with a "buy" recommendation and $13 share target (all figures U.S.). The Globe's David Leeder write that analysts on average target the shares at $13.97. Mr. Palmer says Mogo "offers an attractive means through which investors can play both the digital disruption of the Canadian financial services industry and the increasing adoption of bitcoin and other cryptocurrencies." Mr. Palmer adds in a note: "We believe the company is well positioned to add meaningfully to its base of 1.6 million customers over the next few years. We also anticipate that management will eventually shift its focus to monetizing Mogo's customer base and boosting its average revenue per user (ARPU) and subscription and services revenue. Inasmuch as management points to the approximately $1,300 in annual revenue generated per user that is posted by Canadian banks, the potential upside for Mogo if it is able to capture even a fraction of that amount of annual revenue per customer would be very significant. ... Mogo's valuation does not reflect the scarcity of its platform in the market it serves or its growth prospects, in our view."