Mobile advertising platform Taptica (TAP:AIM) has raised its earnings guidance for 2017. This is mainly thanks to rapid progress in integrating the Tremor Video DSP business acquired in August 2017.
Shares in the Israeli outfit are up 3.2% to 480p as investors react to the positive news.
House broker FinnCap increases its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) forecast from $28.9m to $33m. The modest share price rise should be seen in the context of a 169% advance over the last 12 months.
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US-based Tremor helps advertisers place targeted video ads online. Since its acquisition Taptica has strengthened management and set new budgets and controls and has reaped the rewards with Tremor achieving profitability in the fourth quarter of 2017 rather than for 2018 as a whole, as initially anticipated.
Revenue for 2017 is expected to be ‘broadly in line’ with expectations, FinnCap analyst Lorne Daniel, who increases his price target to 550p, says this suggests ‘some of the acquired business has been cut in the accelerated restructuring and consolidation’.
Daniels trims his group revenue forecast from $216.5m to $210.6m. Elsewhere Berenberg boosts its own price target from 560p to 600p and reiterates its ‘buy’ call.
