LINK Mobility: Enjoying market tailwinds, Jefferies starts with "buy"
01/12/2020 08:48
Dec 1 - ** Jefferies initiates coverage of Norwegian
software company LINK Mobility LINKM.OL with a "buy" rating
and target price of NOK 64
** The brokerage sees the company as a leading
Communications Platform as a Service (CPaaS) vendor and believes
it is well positioned to benefit from European market growth and
consolidation
** "Beyond CPaaS market growth (...) COVID-19 is likely
acting as a catalyst with both enterprises and consumers seeking
to interact in a remote manner," it adds
** Jefferies expects expansion within go-to-market following
an established "playbook" and driving in-market consolidation to
enable increased scale and margin upside
** Its TP implies 28% upside and assumes successful model
execution over the next five years, after which it expects
revenue to start moderating towards the terminal growth rate of
3%
((aleksandra.jasiurska@thomsonreuters.com))