Canaccord Genuity lowers target price on Bango

(Sharecast News) - Analysts at Canaccord Genuity lowered their target price on software firm Bango from 212p to 181p on Monday following the group's recent full-year results.

Bango posted a 2% year-on-year drop in revenues, but said adjusted underlying earnings had risen 7%, with the company also reporting positive cash EBITDA, despite free cash flow being hit by a working‑capital unwind.

Bango also introduced new segmental reporting, separating its payments and subscriptions operations. Payments revenue, which relates to direct carrier billing, falling 15% to $30m, reflecting a decline in high cost‑of‑sale routes acquired from NTT Docomo, though core routes grew 5%, while subscriptions revenue, covering the Digital Vending Machine and super‑bundling products, rose 22% to $22.2m, generating $2.7m of adjusted EBITDA.

Canaccord Genuity, which has a 'buy' rating on the stock, now expects subscription revenue growth of 18.5% in FY26 and 13.3% in FY27, with the segment predicted to turn cash‑EBITDA positive in FY27.

The Canadian bank stated its new target price was a result of its move to de‑risk its FY26 assumptions given the macro backdrop, shifting expected growth into its new FY27 forecasts.

Reporting by Iain Gilbert at Sharecast.com