Analysts at Berenberg kept their recommendation for payments technology outfit Bango at ‘buy’ following its acquisition of rival NTT DOCOMO.
“As we have consistently stated, scale is key to success in carrier billing,” they argued.
And DOCOMO had done just that, they pointed out, building up a portfolio of international merchant clients that included the likes of Amazon and Shopify, alongside partnerships with 60 mobile network operators which together had over 1.9bn users.
Furthermore, they expected the deal to be earnings accretive from fiscal year 2023, so with the “backdrop for mobile commerce as strong as possible”, they stuck to their recommendation to ‘buy’.
Their 300.0p target price for the shares was also unchanged.
Analysts at ShoreCap stood by their ‘buy’ recommendation on shares of Bunzl, pointing out the company’s revised guidance for margins.
That was on top of what analyst Robin Speakman described as a “strong resilient business model to economic cycles (as demonstrated in the past), positive cash generation credentials and ability to source, transact and integrate acquisitions into the Group.”
Margins were now being at a higher level of mix and just below those for the prior year, which had been boosted by the pandemic.
Hence, his expectation was that he woud be upgrading his forecasts accordingly.
He also believed that inflation was likely to remain a core driver across the back half of the year.
Similarly, Bunzl continued to successfully grow its footprint through acquisitions.
All told, Speakman said the results were “excellent on a first look through” and that to them Bunzl’s prospects “look assured”.
Before forecast upgrades, he estimated that Bunzl was changing hands on an estimated fiscal year 2023 price-to-earnings multiple of 16.7 times earnings with the shares ‘fair value’ pegged at 3,450.0p, leaving a clear more than 10% upside “for this quality global group”.
Shares of Made.com rallied on Tuesday after Davy upgraded its stance on the furniture retailer to ‘outperform’, citing sale potential.
Davy lifted its recommendation on the shares from ‘neutral’, arguing that the company is a target for a trade sale.
Davy said a capital raise seems less likely than a sale, which is an outcome pre-IPO shareholders will likely make a push toward.
Davy maintained its 30p price target on the shares.
