Eight Capital analyst Christian Sgro provided an update to clients on Wishpond Technologies (Wishpond Technologies Stock Quote, Charts, News, Analysts, Financials TSXV:WISH) on Wednesday, saying the company’s upcoming fourth quarter results should be a record, while Wishpond’s new Propel IQ marketing platform should simplify its all-in-one value proposition for customers.
SaaS-based Wishpond has marketing-focused online business tools for small and medium-sized businesses. The company launched Propel IQ last month, with Wishpond calling it its most extensive solution offered to date, with lead generation, email marketing, automation and marketing technology solutions. The platform combines those tools with features from its acquisitions in recent years: SMS marketing from Winback, referral marketing from Viral Loops and sales engagement software from PersistIQ.
Wishpond calls Propel an enterprise-level marketing and sales platform for the SMB crowd.
“We believe Propel IQ is the industry’s most complete marketing technology suite for SMBs. Instead of having to use multiple tools and systems to attract and nurture customers, businesses can now get absolutely everything they need on our platform,” said Chairman and CEO Ali Tajskandar in a press release.
“This is a major milestone for the Company as it truly combines the power of Wishpond’s legacy platform with its recent acquisitions to create a fully connected, unique and seamless marketing solution,” he said.
Wishpond recently held its inaugural investor day to showcase Propel IQ, with Sgro coming away from the meetings saying, “With a better understanding of the product roadmap, we expect this measured investment in the business to drive targeted 30 per cent top-line growth while maintaining cash flow profitability.”
“[We] expect the seasonally strong Q4/22 report in mid-April to be the next catalyst for the name,” he said.
Sgro estimated WISH to be currently trading at 1.1x 2023 EV/Revenue, while his 12-month, maintained target of $1.10 per share is based on a 2.0x multiple, with larger digital marketing peers are trading at 5.5x. At press time, Sgro’s $1.10 target represented a projected one-year return of 77.4 per cent. Sgro reiterated a “Neutral” rating on the stock.
Ahead of Wishpond’s fourth quarter earnings expected on April 13, the company posted record revenue of $5.5 million in its third quarter last year, up 38 per cent year-over-year and attributed by the company to its expanded sales team and product integrations from acquisitions.
Disclosure: Wishpond Technologies is an annual sponsor of Cantech Letter.
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