Foster stockbroking has slapped a buy recommendation on New York City-based moving logistics company Updater Inc (ASX: UPD) with a price target range of $1.70 to $3.14.
Updater Inc develop technology to improve relocation processes, with the web-based Mover Product assisting US households to manage their moving-related logistics.
Updater was down 5.2% to $1.16 at the time of writing, off the back of the March 29 release of its 2017 annual report, highlighting the 287% increase in revenue to $US2.2 million reported in its preliminary results on February 28 and the acquisition of two leading software companies – IGC Software and Asset Controls Inc.
Foster named the ramp up of Updater's Business Products, 2018 calendar revenue growth forecasts and contracts with new business partners as the reasons behind its buy recommendation, as Updater anticipates the launch of Paid Programs – a next generation relocation platform – to drive second-half revenue in CY18.
Foster has a 40% risk factor on the stock, but say the Business Products focus and Paid Programs launch are among the company's "critical opportunities to de-risk the business".
