Last checked at 26 Mar 2019 11:43
Edison Investment Research Limited Edison Investment Research Limited: Edison issues outlook on Boku (BOKU) 26-March-2019 / 11:42 GMT/BST London, UK, 26 March 2019 Edison issues outlook on Boku (BOKU) Boku has built a platform that helps merchants to transact with consumers safely and simply in a mobile-first world. The first application enabled by this platform, direct carrier billing (DCB), continues to perform well, with 100%+ volume growth translating to 45% revenue growth and an EBITDA margin of 17.9% in FY18. The recent entry into the identity verification market broadens Boku's addressable market and leverages the strength of its existing carrier relationships. In our view, the current share price does not capture the growth potential of the business. While Boku trades at a premium to peers in FY19 on EV/EBITDA and P/E multiples, strong forecast growth in revenues and earnings puts it at a discount to peers in FY20 and FY21. Share price catalysts to reduce this discount would include evidence demonstrating progress towards our revenue targets for the Boku Identity business (such as new customer wins or extensions to existing agreements) and major merchants signing up for and rolling out carrier billing.Click here to view the full report. All reports published by Edison are available to download free of charge from its websitewww.edisongroup.com About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities. For more information please contact Edison: Katherine Thompson, +44 (0)20 3077 5730Dan Ridsdale, +44 (0)20 3077 5729tech@edisongroup.com Learn more at www.edisongroup.com and connect with Edison on:LinkedIn https://www.linkedin.com/company/edison-investment-research Twitter www.twitter.com/Edison_Inv_ResYouTube www.youtube.com/edisonitv Dissemination of a CORPORATE NEWS, transmitted by EQS Group.The issuer is solely responsible for the content of this announcement. |
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corporate announcement transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.