Yet another incredible 11 page report from Phillip Capital with an initiation of coverage position and 55c price target.
Turnover of $60 mil this FY, then $103 mil & $162 mil.
EBITDA of $8 mil, $16 mil & $30 mil.
"EBITDA margins can expand to nearer 20%."
"Target price of 55%, MBE is cheap."
"I think the route to revenue of $100 mil plus is relatively clear and I feel this management team will continue to over deliver as they have in the past".
"I see 62% upside in the near term driven by earnings growth and a re-rating."
"Owing to the strong earnings growth and strong theme driving the stock we feel MBE should trade on 22x forward PE."
"The business has changed and improved immeasurably."
Advertising...." MBE Australia's segment grew 72% over FY15."
"The opportunity exists to push Vismond, PF marketing technology stack though the UK business (Punch). It should drive large revenue and margin improvements."
"In due course we expect MBE to move into Telenors other markets. In addition to the Nordic home markets of Telenor, they are active in Malaysia (opened), Thailand and Myanmar."
We are now getting a chorus of different reports who are bullish on MBE with a strong vire the turnover is heading to $100 mil plus with future EBITDA of $16 & $30 mil which is going to send the SP north sharply IMO.
What a lovely way to end the weekend. Enjoy HC buddies!
MBE Price at posting:
33.5¢ Sentiment: Buy Disclosure: Held
