Broker5 Dec 2019 15:36
Broker note out:
EVR has announced an extension to its partnership with O2, the
UK subsidiary of mobile network operator Telefonica. O2 will offer
its customers on 30GB and 5GB contracts, free access to MelodyVR
for 6 months and 3 months respectively, as part of its O2 Extras
programme. We believe this is a positive catalyst for the shares
this morning and reiterate our Buy rating as management
execute its strategy of partnership-driven growth in the short
term, pivoting the model into high-visibility recurring revenues
and a sticky customer base. Further, we believe the seasonal
timing and impending 5G infrastructure roll-out imply a strong
likelihood of adoption. Our TP of 18p implies material upside
potential.