Monday, 10 March 2014



Global Maxfin Capital Inc analyst D. Joseph MacKay released a report today on YANGAROO with a STRONG BUY recommendation and a 12-month target price of $0.60. It was trading as of this writing at $0.40.

The report, titled “YANGAROO – Turning The Corner”, outlines YANGAROO’s ability to establish itself as a viable number two supplier, now that Extreme Reach (Private) has acquired Digital Generation’s TV business, the largest player in the market.

Key highlights from the report include:
  • 2014 Revenue is forecasted at $6.4M, an 84% increase over the prior year, while Joseph MacKay conservatively projects a growth of 36% in 2015E to $8.7M. With these forecasts, YANGAROO will be EBITDA positive for the first time in the first quarter of 2014.
  • The Advertising Segment is expected to generate significant revenue growth due to changes within the industry as well as changes in the Company’s NYC office. In 2014E, Joseph MacKay is forecasting that YANGAROO’s advertising revenue will grow by 225% to $3.9M and by 54% in 2015E to $6.0M.
  • The Music Business is forecasted to grow by 9% to $1.7M and Global Maxfin Capital expects a further increase of 10% in 2015E to $1.9M.
  • The Awards Show Business is also forecasted to grow by 10% in 2014E to $750K, while the Analyst expects a slightly lower growth of 5% in 2015E to approximately $800K.
  • With consolidated revenue forecasted to grow significantly in 2014E, Global Maxfin Capital notes that YANGAROO’s EBITDA will finally move from a loss of $532K in 2013E to a surplus of $1.7M in 2014E. By the end of 2015E consolidated revenue will see an even further increase to $2.6M.

 To view the full report, please click here.

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