Mobile Embrace Limited (MBE) is a mobile payments and mobile marketing company.
Initiation - the monetization of the connected consumer
Mobile Embrace Limited (MBE) is positioned to benefit fr om the continued adoption of smartphones which are fast becoming the device of choice to connect to the internet. Smartphones are changing the way we interact, share content, conduct commerce and stay informed and as such are driving structural shifts across many industries. In Australia, MBE’s core market, smartphone penetration is greater than 70%, ahead of most developed counties. MBE is exposed to two smartphone driven themes namely, mobile payments (especially direct carrier billing) and the structural shift to online advertising (especially mobile advertising). MBE has the first mover advantage in Australia across both themes and is quickly expanding offshore. It has the technology, relationships, is profitable and is well placed financially (BBY assumes net cash A$15 M at 30 June 2014). We initiate with a BUY recommendation and an A$0.30/sh 12 month price target. This is underpinned by our FY15 DCF valuation (A$0.30/sh)
MBE Price at posting:
22.0¢ Sentiment: Buy Disclosure: Held
