Berenberg ups price target, revenue estimates for Boku

The mobile payments and ID specialist said on Tuesday that interim revenues would be “at least” $34m, up 37% on the previous year, while adjusted earnings before interest, tax, deductibles and amortisation had jumped 50% to $9.6m.

The firm also expects its full-year performance to be ahead of expectations as a result of the strong first half.

Berenberg, which has a ‘buy’ rating on the Aim-listed stock, upped its target price to 260p from 190p following the update, and increased its revenue estimates.

It said: “Ahead of expectations, with so much more to come. Boku delivered a very strong first half update, with payments revenue and EBITDA well ahead of expectations, and its Identity segment returned very strong growth also. This leads us to upgrade our full-year 2021-2023 revenue estimates by 5%.

“More exciting is Boku’s expansion into other mobile-first payment methods, which not only significantly expands its addressable growth opportunity, but also increases its strategic value.”

As at 1415 BST, shares in Boku were ahead 4% at 171.0p.