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CANADA RESEARCH PUBLISHED BY RAYMOND JAMES LTD.
MOGO INC. (MOGO-TSX | C$9.93)
Completes Investment in Coinsquare; Timely Given Coinbase IPO
STEVEN LI, CFA 416.777.4918
VIEW FULL REPORT
RATING
Outperform 2
TARGET
C$15.00
SUITABILITY
MA/ACC
MARKET CAP (MLN)
C$652
ESTIMATES
2021E EPS C$(0.72)
2022E EPS C$(0.47)
Mogo has taken a major equity stake in the “Coinbase” of Canada. They see 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 derisked way. Based on where Voyager Digital and Coinbase are trading, we calculate there is ~$6-7/share in Mogo stock that can be attributed to this stake in Coinsquare. No change to our target price which already reflected Coinsquare.
April 16, 2021
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