Flash note from Shaws issued, price target remains very strong - profitable and still cheap:
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Flash Note
Pureprofile (PPL) Rating: Buy | Risk: High | Price Target: $0.79 Management delivering on Strategy; Huge Growth, Profitable and Still Cheap To read this Report click here EVENT
PPL today provided investors with an update on its growth strategies and re-affirms that FY16 revenue is set to exceed the prospectus forecast $28.1m, Shaw FY16F $29.8m. HIGHLIGHTS
International expansion and increasing sales headcounts is generating more clients. This is our fundamental growth driver for PPL, and the company update highlights progress in expanding their customers globally. Programmatic Media has benefitted in New York, with 15 new publisher clients secured within 4 months of entering the US market. PPL also have a strong pipeline of publishers management believe to sign in the short term. This validates PPL’s trading techniques to generate higher yields for advertising inventory and should increase traction to run advertising campaigns for organisations. We believe there is further revenue upside to our numbers through FY17 as the United States becomes a greater opportunity and portion of PPL’s business. Programmatic advertising spend is forecasted to grow by 25% globally in FY17 and represents a US$25b industry.
PPL database of profiles continues to grow. Although no metrics were provided by PPL, its Data & Insights division continues to grow the number of profiles they have on their database as well as the depth of data per person. This is vital for PPL as the base of their business is driven by a large data set. The increase has led to an increase in the volume of research campaigns and provides further business opportunities.
Investment in product and technology delivers deeper insights for clients. FY17 will see an updated version of the PPL SaaS platform and management expect this to develop clients in the telecommunications and financial services sectors. No specific companies were mentioned; however we believe that they’re targeting the large retail Banks and Telco providers as clients.
PPL reiterate that FY16 revenue is expected to exceed prospectus forecast of $28.1m. Shaw’s forecasted revenue for FY16 is $29.8m. However, with increased clients and growing traction in running research campaigns, there is further upside potential at the top line for PPL.
Danny Younis Senior Analyst
Also, coverage from Marketwire News this morning. Retracement is proving a good time to buy:
