Snipp has triple-digit upside, says Paradigm

Snipp Interactive (Snipp Interactive Stock Quote, Chart, News: TSXV:SPN) is an emerging marketing tech player with a huge addressable market, says Paradigm Capital analayst Kevin Krishnaratne.

In a research report to clients today, Krishnaratne initiated coverage of Snipp with a “Buy” rating and a one-year price target of $0.65, implying a return of 103.1 per cent at the time of publication.

Krishnaratne says Snipp already has a solid track record of winning clients and earning repeat business from them. While he notes that prior to 2015, more than 95 per cent of the company’s business was from one-off promotions, that number is dropping rapidly and the company is fast working toward a respectable ration of recurring revenue. The analyst thinks this will soon drive the company to profitability.

Krishnaratne says Snipp is bridging the brand-to-consumer gap with its unique brand of mobile technology that is making inroads with traditional Consumer Package Goods (CPG) companies, some of whom may have been slow to adopt new tech, and do not typically have the access to consumer data that industries like hotels, airlines or telcos do.

“What we like about Snipp is that it is channel agnostic, with its solutions able to touch consumers viewing any form of media at any time during the purchase decision,” says the analyst. “Evidence suggests that CPG companies are increasingly gaining comfort in transitioning ad spending toward more efficient digital means. In our view, Snipp is well positioned to participate in the CPG industry shift to explore digital and mobile initiatives while still maintaining a foot in the traditional ad world.”

Krishnaratne thinks Snipp sits at the midway point of marketing technology company and traditional advertising agency, industries that are both fragmenting. He says the company’s focus on consumer data will ensure that it remains competitive, in an addressable market (global ad spending) that tops $500-billion.