“Digital Turbine (APPS) reported a F4Q beat versus our estimates and guided F1Q revenue slightly ahead; shares traded down 5.3% AH after trading up 9.3% intraday. For F4Q, Revenue/AEBITDA came in at $21.0M/breakeven versus our estimates of $20.1M/-$0.9M; consensus did not update for asset sales. F1Q revenue guidance of $23.0M was slightly above of our estimate of $22.7M as the company is seeing solid traction for its new products and increased monetization from existing customers; however, a reduction in high-margin licensing revenue should lead to pressure on margins. Our FY19 revenue is unchanged while AEBITDA declines from $5.1M to $4.1M. We are also introducing our FY20 revenue/AEBITDA estimates at $116.4M/$7.3M. Our PT declines from $2.80 to $2.30 based on a 5x multiple of gross profit (from 6x), as higher- margin licensing rev are declining.”
According to TipRanks.com, Sinha is a 4-star analyst with an average return of 6.2% and a 55.2% success rate. Sinha covers the Technology sector, focusing on stocks such as Limelight Networks, Alphabet Inc, and Cars com Inc.
Currently, the analyst consensus on Digital Turbine Inc is Moderate Buy and the average price target is $2.90, representing an 82.4% upside.
In a report issued on June 8, National Securities Corp also maintained a Buy rating on the stock with a $3.50 price target.
The company has a one-year high of $2.59 and a one-year low of $0.95. Currently, Digital Turbine Inc has an average volume of 803.3K.
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Digital Turbine, Inc. delivers end to end products and solutions for mobile operators, application advertisers, device original equipment manufacturers and other third parties to enable them to monetize mobile content and generate user acquisition. It operates through two segments: Advertising and Content.