Analyst Scott Buck of H.C. Wainwright reiterated a Buy rating on Mogo Finance Technology, retaining the price target of $4.00.
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Scott Buck has given his Buy rating due to a combination of factors that highlight Mogo Finance Technology’s strategic initiatives and financial potential. The company has announced a significant commitment to Bitcoin, allocating up to C$50 million as part of its long-term capital preservation and product innovation strategy. This move integrates Bitcoin into Mogo’s corporate framework, allowing investors to gain exposure to Bitcoin without the direct impact of its daily price fluctuations, while also focusing on high-growth areas such as wealth management and payments.
Additionally, Mogo’s anticipated sale of certain investment portfolio assets is expected to strengthen its balance sheet, providing approximately C$50 million in available cash and investments. This financial flexibility is crucial for accelerating growth in its wealth and payment verticals, which have already shown impressive year-over-year growth. Buck’s valuation of MOGO shares at $4, representing a 55% upside from recent trading levels, further supports his Buy rating, as he believes the current share price does not fully reflect the company’s operational and investment value.