Strong organic growth prospects and an accretive M&A agenda are a winning combination for Wishpond Technologies (Wishpond Technologies Stock Quote, Chart, News, Analysts, Financials TSXV:WISH), according to Eight Capital analyst Christian Sgro, who initiated coverage of the stock on Tuesday with a “Buy” rating and $2.50 target price.
Vancouver-based Wishpond is a provider of SaaS-based digital marketing solutions, with an all-in-one suite of services covering marketing, promotion, lead generation and sales conversion and geared at the small- to medium-sized business (SMB) crowd. Founded in 2009, Wishpond made its public debut on the Venture Exchange on December 11, 2020, and is currently up about 53 per cent.
Sgro said Wishpond is an organic growth story with plus 30 per cent annual growth expected to continue going forward along with its M&A upside.
“The company has proven its ability to grow organically (40 per cent-plus CAGR since 2017), while maintaining EBITDA profitability,” Sgro wrote. “The company’s reported 3.5:1 LTV to CAC ratio gives us confidence that investment in the business will convert into strong organic sales growth. New product roll-outs and up-sell to fully managed services will drive increases in ARPU and customer retention. We believe Wishpond is well positioned as an affordable, end-to-end solution for SMBs in need of a digital marketing presence.”
On the acquisition front, the company has completed two…