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MGM Wireless (ASX: MWR) upgrade PT to $8.24 (up 600% from initial recommendation)

Posted by Greg Tolpigin on 05-Nov-2018 10:41:36

Here is my latest upgrade (Price Target increased to $8.24 (up >600% from our initial PT 5 months ago; currently up 250% since then) to my MGM Wireless forecasts and valuation following the successful rollout of the SPACETALK watch to Spark NZ - a major achievement - and the very positive Trading Update. The performance of MGM and their success in the new wearables category for kids continues to exceed my expectations. 

As a result of the full JB Hi Fi and Leading Edge rollout, expansion across NZ and strong ongoing sales - my valuation jumps from $4.07 to $8.24.  Even at this price it will still be valued at a lower multiple than its nearest wearables comparative - Nuheara (NUH). 
 
I believe that further expansion will be seen into the Europe/UK in early 2019, after a strong Christmas sales period (backed by a solid marketing campaign), however I have no European success included in any of my numbers. Any deal here as the impact of doubling my existing valuation. 
 
MGM continues to be a solid winner and still is yet to be completely rewarded for its ongoing success. 
 
Enjoy. 
GT

 

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greg_tolpigin_large_thumbGreg is the Head of Proprietary Trading at Gleneagle Securities and has over 20 years of experience as proprietary trader and high level strategist for the major investment banks including Citigroup, Bankers Trust and Macquarie Bank. He has been involved across all asset classes including commodities, bonds, currencies and equities right across the globe.

 

After a 10 year career with the large investment banks and research firms Greg formed his own proprietary trading firm successfully building the business into a multi-million dollar trading operation that turned over a billion dollars a year. This same team now runs the proprietary trading desk at Gleneagle Securities, risking their own money in line with the firm's and client's capital.

Greg has appeared on CNBC, Channel 9 - Business Sunday programme, a guest columnist for the Australian Financial Review, a regular author for Personal Investor, Wealth Creator and Shares magazine and is the former Treasurer of the Australian Technical Analysts Association.

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