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Slowly, quietly creeping up. No fuss, no hype. Seems solid to me.
Positive news today.
Amino Technologies* Broker Finncap.
3 reasons to look at Amino
In the first of a series of reminders that we will be delivering on Fridays to
spotlight the opportunities in AIM tech, we reiterate our 215p target price and the
investment case for Amino. After an impressive Capital Markets Day yesterday,
with a tech run through and case studies, the technological excellence that
Amino’s integrated devices earned a strong reputation for is evident in the
software. From a financial point of view, we draw attention to the benefits of
software revenue growth and the increase in recurring revenue. From a structural
point of view we barely need to notify you of the now-default consumer
expectation to view TV content anytime, anywhere and on any device, but also
direct from the content provider platforms as well as from broadcast/telco
platforms – and Amino enables this. From a historical point of view, management
has excelled at ensuring excellence in its supply chain management, margin
maximisation and cash generation. While COVID brings the risk of muddying the
waters for every stock, Amino is in the right place and at the right time during
rapid TV platform evolution.
?Transformation: The transformation to drive software, and decline to pitch in
commoditised device situations, was announced in January 2019, with restructuring
completed by April. Amino integrated devices (set top boxes) are already
differentiated by their software quality, and the acquisition and integration of 24i
Media (acquired July 2019) has accelerated software & services as a proportion of
revenue (now 25%), as well as accelerating growth.
?Structural: Netflix doesn’t run live TV as a platform, so think of the Amino product set
as enabling Netflix plus Sky+, in providing video on demand AND live TV on any
device, anywhere, anytime. Consumers expect this: and it is what each broadband
provider (fixed mobile or cable) needs to provide, to capture more spend and reduce
churn. Smaller telcos don’t have the budgets of Netflix, or Sky, so Amino provides the
in home kit (set top boxes or Smart TV app) as well as the anywhere anytime any
device platform access through a compelling and familiar user experience. Content
providers would also now rather distribute content themselves, on their own platform,
but not all have the budget of Disney+: Amino enables Broadway TV for example,
providing a platform for Broadway online, with great take-up (+4000%) in lockdown.
?Track record: senior management has gained a reputation for margin maintenance
and cash generation, and transparency. Add revenue growth as software grows and
device revenue stabilises at a high margin, and Amino is set to deliver value.
SP Target 215p
https://uk.advfn.com/p.php?pid=legacydaily&epic=L^AMO&type=4&size=3&period=3&ind_type1=1&ind1_1=&ind2_1=&olx_1=3&ma_type1=3&o_1maday1=10&o_2maday1=&o_colour1=1&olx_2=3&ma_type2=3&o_1maday2=50&o_2maday2=&o_colour2=2&olx_3=3&m
Amino Technologies PLC AMO finnCap Corporate 141.50 141.50 215.00 - Unchanged....SP Target 215p