below is an extract from the latest GS note on 9th Jan - they...

below is an extract from the latest GS note on 9th Jan - they remain neutral on the stock and anticipate a capital raising within 12 months

"Strong improvement in North America monthly run rate - MP1 hasannounced that its North American Monthly Recurring Revenue run-rate hasincreased from A$0.55mn at end of June 2018 to A$1.0mn at end of December2018. To put this into context, our current 2H18 North America revenue forecastis for $6.7mn suggesting it has exited 1H18 on track to achieve this. We havebeen looking for evidence of its increased investment in sales and marketingthrough 2018 in the North American market, resulting in improved momentum inrevenue growth. This update could be taken as some early evidence of this beingthe case. However, no other operating metrics have been disclosed by thecompany although it will release a quarterly global market update on 17 Jan2019.n Public cloud infrastructure adoption will remain a key driver for MP1 - In ourmost recent IT Spending Survey: Spending intentions downtick significantly, butremain in expansionary territory – 18 Dec 2018 – our US colleagues highlightedthat CIOs continue to migrate IT infrastructure to the public cloud. The surveysuggests 26% of workloads are now on the public cloud (relative to 18% in June2018) and that 38% of workloads will be on the public cloud in 3 years (relativeto 34% in Dec. 2017 and a high of 38% in Dec. 2016).We still anticipate a capital raising will be required in 2019 - Balancing thetailwind of public cloud adoption is the fact we forecast MP1 to require furthercapital in FY20E as we forecast it to be operating cash flow break-even only inFY22E. We estimate an equity raise of up to A$50mn may be required.n No change to earnings or recommendation. Our price target comprises ourfundamental DCF valuation (A$3.95, 85% weighted) based on a 10-year forecast(FY19-FY28E) and an M&A component (A$4.95, 15% weighted) based on a peak12-month forward EV/Sales multiple of 13.3x applied to FY20E Sales -unchanged. This results in a blended valuation of A$4.10, implying potentialupside of 11% to last close (A$3.68). Retain Neutral."