Scott Buck, an analyst from H.C. Wainwright, reiterated the Buy rating on Mogo Finance Technology. The associated price target remains the same with $4.00.
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Scott Buck’s rating is based on Mogo Finance Technology’s strong second-quarter performance, which exceeded expectations in both revenue and gross margin. The company reported revenue of C$16.9 million, surpassing the forecasted C$16.0 million, driven by significant growth in its wealth and payments verticals. The gross margin also improved, exceeding 70% for the first time since the third quarter of 2023, indicating better operational efficiency.
Furthermore, Mogo’s strategic initiatives, including the monetization of certain portfolio assets and the inclusion of Bitcoin in its long-term strategy, are expected to attract new investors and provide growth opportunities. The potential for acquisitions could serve as a catalyst for further revenue growth, moving towards C$100 million annually. These factors, combined with the company’s solid capital position, underpin Scott Buck’s Buy rating with a $4 price target.