Mogo Inc MOGO Stock News

Mogo Inc (NASDAQ: MOGO) is gaining traction among analysts as of late, with two buy-side research reports issued this week alone. Not only is the company leading the charge in Canada’s FinTech space, the recent Bitcoin rally is likely to add further strength. Here’s what we’re seeing. 

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MOGO Stock Likely To Rise After Positive Analyst Notes

The first of the two notes that were issued this week was issued by Craig-Hallum. The analysts at the firm have maintained a positive view since they picked up the stock a few months back. Craig-Hallum reiterated this bullish view on the stock with a buy rating and a US$7 price target. In the note, the firm had the following to offer:

“Following a model review post news of the closing of the Difference Capital merger we are tweaking our estimates. On 6/21/10 Mogo announced the closure of the merger with Difference Capital. As a reminder, through this deal Mogo will gain ~CAD$10 million in cash and ~CAD$24 million in venture capital equity in several companies. This deal in our view is equivalent to raising capital at CAD$8-$14 a share and believe it mitigates any liquidity risk over the near term.”

In another note, B Riley analyst, Scott Buck also reiterated a buy rating with a price target of US$7 per share. The analyst shared many of the same views as Craig-Hallum. Here’s a key snippet from the note:

“Last week, Mogo Finance Technology, Inc. closed its merger with Toronto based Difference Capital Financial, Inc. and now trades under a new name, Mogo, Inc. (MOGO – Buy, $7 PT). The merger provides about ~C$9M of cash as well as ~C$24M of venture capital investments that are expected to be monetized over the next 24 months. The influx of cash and venture investments should provide the necessary capital to fund MOgo growth initiatives over the coming years and remove any investor concern that an additional capital raise is necessary. Near term, we expect the new product and partnership announcements, expected later this year, to drive member growth and improve member monetization. Over time, we believe that Mogo can increase its member base to more than two million members with annual revenue per member exceeding $200 suggesting annual revenue of more than $400M and gross margins between 60% and 70%.”

MOGO Is Stronger Today Than Ever Before

Truth be told, Mogo has always been an interesting play. Launched in the early 2000s, the company was one of the first on the scene in the fintech space in Canada. As a result, the company has earned its spot as a leader in the space. 

Today, Mogo is disrupting the banking space in Canada, a space largely dominated by massive financial institutions and plagued with high consumer costs. However, MOgo offers its users access to innovative financial products like their digital spending account with a Visa debit card that helps consumers control their spending and avoid the overspending that traditional bank credit cards cause.

They also help their members monitor and protect their credit and ID from fraud and give them access to smart credit products if they happen to need gredit. Mogo offers all of this through their free mobile app where members only pay for services when and if they need them. This freemium model is the way of the future for banking which is leading to impressive growth!

Moreover, it’s also worth mentioning that Mogo is in the right place at the right time when it comes to the cryptocurrency space. In fact, as Bitcoin continues to rise, with impressive 200%+ gains year to date, the company offers the easiest and lowest cost way for Canadians to purchase the Bitcoin, which will likely lead to further member growth!

In fact, it is projected that over the next few years, the company’s model will lead to impressive growth. Analysts are expecting that the company’s membership base will grow to more than 1.5 million over this period. Moreover, the company has been the target of several positive research reports from analysts, like this one from Zacks

However, the most recent news only expands the opportunity. In a press release issued just last week, the company announced the closing of the transaction with Difference Capital. This is a key transaction as it greatly improves the company’s balance sheet with about CAD$9 million in cash CAD$24 million monetizable assets. 

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The bottom Line

The bottom line here is a simple one. Mogo is quickly gaining steam as the leader of the FinTech space in Canada, and analysts are taking note. With an improved balance sheet, coming product launches, a strong leadership position, and a team that refuses to stop innovating, this is a stock that’s worth your attention!

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