Snipp Interactive gets “Buy” rating, $1.00 target at Euro Pacific Canada

In a research report to clients yesterday, Goff initiated coverage of Snipp with a “Buy” rating and one year target price of $1.00, implying a return of 47.1% at the time of publication.

Goff says he views Snipps’s prospects for organic growth as “modestly undervalued”, but says he sees a lot of potential upside coming from the kind of acquisition the company made on June 1 of this year, when it paid (U.S.) $8.5-million for Menlo Park, California-based Hip Digital Media.

“Our bullish view reflects the potential aggressive upside should Snipp successfully expand its product suite and deploy its disciplined consolidation strategy where two acquisitions YTD support confidence,” says Goff. “Our moderate acquisition scenario could see ~$0.40 added to our DCF and PTs. We believe the organic growth of Snipp’s marketing technology platform will be supplemented with acquisitions from a sector poised for consolidation with a large pool of emerging firms where early digital sales traction leave them pursuing additional capital or partners to fund the next growth phase.”

Founded in 2007, Snipp provides multi-device brand loyalty and marketing programs to customers such as Smirnoff, Kingsford Charcoal, Kraft and Gerber. The company says its programs give brands valuable insight into the habits and preferences of its customers.