Canaccord Genuity predicts big upside at PensionBee
PensionBee Group
148.50p
14:04 02/12/24
Canaccord Genuity has initiated coverage of personal pension scheme provider PensionBee with a 'buy' rating, viewing the investment as "the ultimate high-growth pension stock".
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The broker labelled PensionBee "a unique UK growth story" since the company listed on the stock market relatively early on in its journey – having listed in 2021, seven years after its launch.
These days, it's a digital platform that is expanding rapidly on the public markets, and investors get a chance to benefit from a high-growth business that is yet to scale margins, Canaccord said.
Canaccord estimates that PensionBee is the fastest growing digital platform listed on the public markets worldwide, with a two-year sales CAGR at 35% compared with other peers at just 15%. What's more, the nature of this growth is that it is recurring at very high margins, the broker said.
"PensionBee is a rarity in the online world, a business model that not only retains customers on average for 20 years but sees the value of its customers grow every year, resulting in exceptional customer economics, with customer lifetime value building to such unprecedented levels," Canaccord said.
The broker has placed a 217p target price for the stock, suggesting 46% upside from Friday's closing price.
Furthermore, early indications of PensionBee's entry to the US market – through its partnership with State Street which launched in July – are positive, and Canaccord estimates this business alone could be worth 120p per share.
The stock was up 1% at 150p by 1129 GMT.