TSX-listed Mogo (Mogo Stock Quote, Chart, News: TSX:MOGO) is the only Canadian company covered in the report. The bank has a 12-month target price of $3.00 on the stock, implying a return of 55%.
The BMO report follows on a November report from M Partners analyst Steven Salz, who reiterated his own “Buy” rating and $3.00 target on Mogo.
Salz noted that Mogo’s first EBITDA positive quarter, its Q3 issued in mid-November, was an upside surprise to him.
“Steady top line growth, combined with ~$1M in marketing savings from the Postmedia partnership enabled Mogo to achieve its first EBITDA positive quarter in company history,” said Salz. “We note that this accomplishment is not significant for a traditional lender; however it marks a step towards becoming net income positive with the launch of the upcoming fee-based products, as well as in a downside case from shifting to a pure lender.”
At press time, shares of Mogo were up 4.3 per cent to $2.40.
Disclosure: Mogo is an annual sponsor of Cantech Letter.
0
Comment