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(Sharecast News) - Analysts at Canaccord Genuity lowered their target price on software firm Bango from 212p to 181p on Monday following the group's recent full-year results.
Bango posted a 2% year-on-year drop in revenues, but said adjusted underlying earnings had risen 7%, with the company also reporting positive cash EBITDA, despite free cash flow being hit by a workingcapital unwind.
Bango also introduced new segmental reporting, separating its payments and subscriptions operations. Payments revenue, which relates to direct carrier billing, falling 15% to $30m, reflecting a decline in high costofsale routes acquired from NTT Docomo, though core routes grew 5%, while subscriptions revenue, covering the Digital Vending Machine and superbundling products, rose 22% to $22.2m, generating $2.7m of adjusted EBITDA.
Canaccord Genuity, which has a 'buy' rating on the stock, now expects subscription revenue growth of 18.5% in FY26 and 13.3% in FY27, with the segment predicted to turn cashEBITDA positive in FY27.
The Canadian bank stated its new target price was a result of its move to derisk its FY26 assumptions given the macro backdrop, shifting expected growth into its new FY27 forecasts.
Reporting by Iain Gilbert at Sharecast.com
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