ACF revises REPX upwards by 40%: market cap at 50M and minimum target price between 15.95 and 16.77 euros -e.c.-

ACF Equity Research brand
ACF has launched a analysis report outlining REPX’s progress in outcomes and strategic partnerships, revising its target price upwards by greater than 40%
The Reputation Exchange Plc (CY-CSE:REPX)LONDON, UK, August 24, 2021 / — Analysts are more and more liking the enterprise mannequin of REPX, the London-based Fintech with Italian soul that’s innovating the normal funds trade by combining cost know-how and the fervour of a whole lot of tens of millions of followers all over the world with social media. REPX has achieved undisputed management within the market area of interest of co-branded cost playing cards destined for the world of soccer and its followers, signing partnerships with a very powerful groups on this planet (Real Madrid, Milan and Rome, amongst others).
ACF, an impartial analysis home licensed by the FCA, the UK regulator, not too long ago launched a analysis report on the corporate (obtainable on-line for viewing, outlining REPX’s progress when it comes to achievements and strategic partnerships. ACF is constantly ranked primary amongst worldwide financial evaluation institutes for the effectiveness of investor engagement on digital and social media channels.
ACF factors out that REPX’s “social engagement internet online affiliate marketing” mannequin, outlined as “distinctive”, which goals at the diffusion of about half one million pay as you go playing cards within the subsequent 12 months, is attaining all of the targets set: the corporate is within the remaining part of admission to the itemizing course of on the London Stock Exchange, is already listed on the Cyprus Stock Exchange, has concluded agreements for the distribution of its cost playing cards all through the SEPA space, North and South America, and Deloitte is at work for a strategic industrial associate.
Therefore, due to REPX’s peculiar enterprise mannequin, it expects excessive income development, low advertising prices in comparison with its opponents, in addition to the management of working and capital prices in place will result in an anticipated technology of free money stream.
Among the outcomes already achieved by REPX, that can flip into quick development in turnover, are the completion of the acquisition of BBS-One (IT firm), the manufacturing of the primary 140 thousand playing cards, the expansion to 100 thousand level of sale, together with these of large-scale distribution, the place pay as you go playing cards and Gift Cards shall be supplied (due to agreements with Mooney and Epipoli), the primary app for supporters that’s operational and in use (the Roma Football Club app) with the relative first 20 thousand cost playing cards on the market, the strengthening of the board with the addition of Executive Chairman Ezio Maria Simonelli and Executive Director Ernesto Paolillo, high-level profiles with expertise each in soccer and banking industries.
ACF instantly assigns a valuation of REPX shares (presently listed in Cyprus at €11.25) between €15.95 and €16.77, for an implied capitalisation of €51.28 million, thus attributing a right away potential upside to the worth of the present inventory of greater than 40%. The analyst agency estimates income of €19.63 million in 2022 and €25.24 million in 2023, comparable to EPS of €1.53 and €2.66 respectively. As proof of an especially conservative valuation, the enterprise worth corresponds to a gross sales a number of of two.6 (in 2022) and 2.0 (in 2023).
ACF recollects in its report that, in accordance with a analysis not too long ago revealed by Sponsor United, an trade benchmark for model evaluation in sport and its visibility, REPX already ranks ninth on this planet, amongst 109 Fintech manufacturers considered for degree of visibility in sport. In addition, REPX has made the strategic choice to enter the world of Esports via a partnership and thus creating an revolutionary platform and cost card, completely designed for the world of Esports avid gamers.REPX has a number of merchandise on the launching pad for the 2021/22 biennium. In the report by the London-based analytics home, it’s identified that REPX now has a pool of over 480 million followers of the soccer groups or celebrities with whom it has signed agreements and that, even utilizing an especially conservative conversion fee of 0.10-0.13% of half of their (energetic) follower base, this equates to 435,000 playing cards in manufacturing by 2023, numbers that will instantly venture REPX among the many related gamers on this planet of neo banks, a sector estimated to develop 48.1% in mixture over the interval 2019-2027 for a complete market worth of over $471 billion.
ACF continues its evaluation by stating that neo-banks are normally valued on the idea of a worth per card issued, round €400/600 per subscription, with Revolut justifying its June 2020 capitalization of €4.6 billion for its 12 million clients (i.e. round €388 per subscription), whereas, equally, N26 is valued at €593 and Monzo at €417 per buyer. REPX is within the early levels of its enterprise cycle and so ACF reductions its valuation by 65% in comparison with the principle gamers within the market, assigning a worth of solely €163 per deliberate subscription.
Among the optimistic catalysts, ACF cites the issuance of the three.5-million-euro bond listed on the Vienna Stock Exchange in latest days, which can finance the corporate’s strategic plan, the quite a few further partnerships the corporate is engaged on with world-class sports activities groups and numerous celebrities, and the potential for the entry of a serious industrial associate below evaluation by Deloitte.
Lastly, ACF factors out that the very fact of utilizing the common free money stream and EBITDA multiples of listed corporations within the sector already suggests a weighted honest worth of €108 million for REPX, thus already double the anticipated valuation in London, destined to rise to €160 million in 2022 as revenues develop. An method primarily based on development estimates of three.5% of discounted money stream and free money stream, and due to this fact very “modest”, which totally reductions execution dangers and highlights an incredible potential for development as soon as REPX is listed in London.
Assuming to make use of a valuation primarily based on the worth of every subscription of the variety of playing cards anticipated for the yr 2022, utilizing the principle public and personal corporations within the sector as benchmarks, ACF calculates the potential worth of REPX at over €275 million (thus 5.5 occasions the anticipated worth in London and 7.8 occasions the present worth on the Cyprus Stock Exchange).Antonio MattaThe Reputation Exchange PLCemail us hereVisit us on social media:FacebookTwitterLinkedIn

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August 24, 2021, 07:37 GMT

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