Buy Goldmoney on weakness, says Mackie Research

With its share price down 30 per cent since November, Mackie Research Capital analyst Nikhil Thadani thinks investors should be looking at Goldmoney (TSX:XAU).

In a research update to clients Friday, Thadani maintained his “Speculative Buy” rating and one year price target of $5.00 on Goldmoney, implying a return of 81 per cent at the time of publication.

Thadani says his more negative take on the company of last November is fading in the face of real corporate progress.

“XAU stock is down ~30%, since we grew cautious following a pricing cut in November, however, the company has made considerable progress with new products and investments in recent months,” the analyst says. “We recognize XAU is a complex company and quarterly results can be volatile (macro driven), but new products /investments could aid revenue growth in the near to medium term.”

Thadani thinks Goldmoney will post EBITDA of negative $5.78-million on revenue of $523.8-million in fiscal 2017. He thinks those numbers will become EBITDA of negative $6.00-million on a topline of $912.3-million the following year.