- Analyst claims Apple is tech multi-national new client
- Impact on forecasts could be ‘material’ in time
- Shares have slumped more than 30% in 2022
One-click mobile payments firm Bango (BGO:AIM) is reckoned to have bagged Apple (AAPL:NASDAQ), the world’s biggest technology company, as a new client, according to one analyst.
‘Considering the company currently partners with Google Play, Microsoft’s Windows Apps, Facebook App Center, Amazon Appstore and Samsung Galaxy Apps, we speculate that it has signed this agreement with Apple,’ said the software analysis team at investment bank Berenberg.
Cambridge-based Bango said it will provide carrier billing and bundling services for app store payments and subscriptions for an unnamed ‘leading, multi-national technology company.’ Its platform allows mobile users to add charges for stuff bought online to their mobile bill, an easy one-click option that also strips out the need to input credit or debit card details.
POTENTIAL FOR ‘MATERIAL UPSIDE’ TO FORECASTS
Berenberg said the agreement ‘further reinforces our confidence in Bango’s investment case and is evidence that the company’s platform is indispensable to the world’s largest merchants.’
The impact on Bango’s financial performance could be significant, in time. The company said that it does not expect the new agreement to alter financial expectations for full year 2022 (to 31 December), while it also resisted providing guidance beyond this year. However, as the relationship develops with its new tech partner, ‘we expect Bango could deliver material upside to our base case revenue and profit estimates,’ Berenberg told clients.
Berenberg’s forecasts for 2022 to 2024 are shown in the table.
| Bango expected to grow rapidly (million) | |||
| 2022 | 2023 | 2024 | |
| Revenue | $26.6 | $34.7 | $39.9 |
| EBITDA | $8.3 | $12.5 | $14.4 |
| EPS | $0.028 | $0.063 | $0.073 |
| PE | 61.4x | 27.3x | 23.6x |
| Source: Berenberg, Shares | |||
Like most tech growth companies, Bango shares have been under a lot of pressure this year as investors looked for safe haven assets as the cost of living jumped and interest rates started moving higher.
The stock is down around 30% this year even after jumping 11.5% after the latest contract news was announced. The shares are currently trading at 140p, versus Berenberg’s 300p target price.
