A Fundasy Opinion
I bought some already to be frank. The risks are there, obviously. The OEM’s and Carriers can try to cut them out. However with more partnerships forming, each big player becoming a smaller piece of the pie. Plus, Digital Turbine is increasing the number of products offered, and OEMs and Carriers don’t want to deal with individual advertisers themselves. Put all those reasons together and that’s why I can stomach the risky thesis.
The company is being currently valued around 8 times sales, 80 times current PE, and 30 times forward PE. However with Mobile Posse increasing revenues over 40% and providing reoccurring revenue, that number could be worse. The company is profitable and with the revenue growth that it will have in 2021, around a 30 times forward earnings is not terrible.
Put it all together, you have a company that is increasing revenues, margins and earnings. Not to mention, you have management that knew a good acquisition when it came along. It’s not a terrible price for years of growth ahead.
Fundasy Rating: Buy.
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