Bango Share Price (BGO)

I'll take you back to when BGO announced a partnership with Facebook i'm pretty sure that not one transaction went through.

I also can't see a massive uptake of people paying for LI with their phone?

Https://www.proactiveinvestors.co.uk/companies/news/1091893/bango-adds-linkedin-to-digital-vending-machine.html

They wouldn't use DVM unless it was top notch.

Singer’s note is very similar to CG’s - they have a 179p sun of the parts valuation based on 11x EBITDA for DCB and 3.6x Sales for DVM. Again these are “derisked” so clearly based on cautious guidance from Bango.

Singer quote competitor metrics, with an average EV/EBITDA of 14.6 for payment processors and 2.3x for their DVM comparators. They also state that EITHER of the two revenue streams could justify the current share price.

Again, you’d have to say - there is a massive disconnect in valuation between Bango and others. Surely, sooner or later, it will re-rate.

CG have published an updated research note today. Their valuation of 181p and continued Buy recommendation is based on a certain amount of “derisking” to reflect the current macro environment. They have revenue increasing marginally to $53.9m and Adj EBITDA moving from $16.4m to $19.4m. They comment that the visibility and quality of revenue is much improved.

“FY27E, we forecast Bango to have two 'Rule of 40' businesses on an adj EBITDA basis. We believe this outcome is not currently reflected in Bango's valuation. We update our target price following the new segmental reporting this morning, and apply our previous target multiples of 10x Payments EBITDA and 3x Subscriptions revenues to our new FY26E segmental forecasts. This generates a new 181p target price, 15% below our previous 212p target (on FY27E, it would be near 200p). We reiterate our Buy rating and our new target price implies a >2x opportunity.”

Reading this - and in the belief that CG’s valuation metrics are fair - you’d have to say the problem is not so much with the company but the market’s appraisal of it.