Broker tips: Bango, Tullow Oil, Enquest
Analysts at Berenberg initiated coverage on software firm Bango on Friday with a 300.0p target price and 'buy' rating, stating the stock offered "bang for your buck".
Berenberg said Bango, an alternative payments and purchase behaviour targeting platform, more often than not gets viewed as a subscale direct carrier billing business when compared to its UK-listed peer, Boku.
However, the analysts stated that while Bango is smaller by market share, it differentiates itself through its subscription bundling service offered to network carriers and the ability for both physical and digital goods to be transacted through its platform.
The German bank said with its payment data now being used to fuel a new advertising tool for mobile app developers, which was gaining rapid adoption, Bango has broadened its offering and enlarged its revenue opportunity.
"We expect the company to continue compounding sales at a 30% compound annual growth rate, but for earnings growth to outpace this significantly, as recent investment in its platform pays off," said Berenberg. "Bango trades on 13x 2023 EV/EBITDA, a circa 30% discount to Boku and other global payment peers."
Barclays upgraded Tullow Oil but downgraded Enquest on Friday as it changed its rating on the European oil and gas sector to 'neutral' from 'negative'.
"Updated valuations and estimates highlight the positive impact of higher near-term oil prices, offset by signs of higher costs/spending," the bank said.
"A realignment of relative upside results in us upgrading Tullow Oil to overweight and downgrading Enquest to equalweight."
Barclays lifted its price target on Tullow to 75.0p from 60.0p and cut the target on EnQuest to 25.0p from 32.0p.