Re: New Finncap Buy note today16 Dec 2020 12:04
The trick now is to prove the recent positive figures and outlooks will be sustainable going in to 2021.
The FinCap Target of 70p is probably based on Tremor keeping up the growth rates in both Video and CTV areas at least in-line with expected average industry expansion in 2021
Given the predicted huge industry growth rates in CTV and AD-tech in general we should be able to achieve this now that most heavy lifting and streamlining of our technical and commercial offerings have already been carried out.
My personal view therefore is that the FinCap 70p target is NOT set in stone and will be a moving goalpost. There is no reason why it will not be re-rated upwards again once the market is presented with further evidence and prospect of similar successful growth in H2 ( 2021).
We are undervalued, but only to a point, until we start to show good figures and outlook Quarter after Quarter similar to what TD are churning out our SP will not rise by the same rate and speed.
Our H1 figures will be crucial in maintaining the recent upward trend and any possibility of us playing in the Premier League down the line.
I am more hopeful about this BOD who seem to understand the concept of managing expectations and momentum.