Macquarie Research puts 'outperform' on OnMobile Global
Macquarie Research has initiated coverage on OnMobile Global with an ‘outperform’ rating saying the stock has a 42% upside from current levels.
OnMobile Global
cmp: Rs 484.90
target price: Rs 650
Macquarie Research has initiated coverage on OnMobile Global with an ���outperform��� rating saying the stock has a 42% upside from current levels. ���We are excited about the opportunities in the Indian mobile value-added service (VAS) sector as well as in emerging markets. OnMobile is India���s No 1 mobile VAS provider, with around 30% share of India���s VAS market (ex-SMS),��� said Macquarie in a note to its clients.
The brokerage expects a 2 year FY3/08���10E EPS CAGR of 42.5% for the company, led by topline CAGR of 58%, marginally offset by one-time dip in margin in FY3/09E. According to Macquarie, recent M&A transactions have opened the door for OnMobile to tap the potential offered by the international VAS market.
���OnMobile���s international revenues are likely to grow at a faster pace (FY3/08���13E CAGR of 63%) than growth of its domestic revenue (35.5%),��� said the note. The brokerage feels that change in business model and large premiums for future acquisitions could result in value destruction for OnMobile.
cmp: Rs 484.90
target price: Rs 650
Macquarie Research has initiated coverage on OnMobile Global with an ���outperform��� rating saying the stock has a 42% upside from current levels. ���We are excited about the opportunities in the Indian mobile value-added service (VAS) sector as well as in emerging markets. OnMobile is India���s No 1 mobile VAS provider, with around 30% share of India���s VAS market (ex-SMS),��� said Macquarie in a note to its clients.
The brokerage expects a 2 year FY3/08���10E EPS CAGR of 42.5% for the company, led by topline CAGR of 58%, marginally offset by one-time dip in margin in FY3/09E. According to Macquarie, recent M&A transactions have opened the door for OnMobile to tap the potential offered by the international VAS market.
���OnMobile���s international revenues are likely to grow at a faster pace (FY3/08���13E CAGR of 63%) than growth of its domestic revenue (35.5%),��� said the note. The brokerage feels that change in business model and large premiums for future acquisitions could result in value destruction for OnMobile.
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