MOGO $3.08 – Analyst Targets of $7 to $12

MOGO Finance Technology (MOGO:TSX $3.08) – investors.mogo.ca
Shares Outstanding: 23M

MOGO is priced considerably higher than we typically follow, but their valuation is very low and easily falls within microcap territory. Currently the market ignores them (which is shocking given the value of their peers).

Some of you may remember this one. I introduced MOGO October 20, 2016 at $1.39 and by late 2017 it hit $8.40.

In March I featured MOGO to paid MicroCap subscribers in this same price range and with liquidity currently good down here, this was a good time to post an intro publicly.

The info below will give you a good overview but visit their website for further due diligence. If you have questions, contact Christy who handles their corporate communication – Christy.Cameron@mogo.ca

Worth Noting: When I introduced MOGO in 2016, they had 250,000 members. They announced two weeks ago they hit 800,000 (you will see the value of this in the table below)

MOGO is covered by major Canadian firms like BMO and well-respected U.S. fintech analysts like Craig-Hallum who provides coverage of fintech leaders PayPal & Square.

Below are snapshots from five of the most recent reports I have. Targets range from $7 to $12 – note that some of these targets are in USD.

MOGO is covered by major Canadian firms like BMO and well-respected U.S. fintech analysts like Craig-Hallum who covers fintech leaders PayPal & Square.

Here are recent valuations for the continued waive of global digital challenger banking models. With their holistic solutions (Prepaid Visa card, lending, investing, ID fraud protection) MOGO would appear to be the furthest ahead from a product perspective then all of these companies – and one of the highest in terms of revenue.

1) US based Chime just raised  money at a $1.5bn (US$500/member.)

https://www.forbes.com/sites/donnafuscaldo/2019/03/05/chime-raises-200-million-at-1-5-billion-valuation/#30348c11f26d  

2) N26 last round was at $2.7bn (US$1200/member)

 https://techcrunch.com/2019/01/09/n26-raises-300-million-at-2-7-billion-valuation/ 

3) Monzo last valuation was $1.3bn (US$1500/member)  

https://techcrunch.com/2018/10/30/monzocorn/ 

“Mogo is effectively the only public digital banking challenger globally and trading at a massive discount to all of these players.  For those who say yes, but the Canadian market is smaller, you have to take into consideration:

  1. Canada is about 10% the size of the US market but is still a multi trillion $ market and a lot less competition
  2. The U.S. has 4000 fin-techs to Canada’s 160 (and MOGO is by far the largest in Canada).
  3. ING Direct Canada grew to 1.8mm members before Scotiabank acquired them for over $3bn (just the Canadian business).