Sito Mobile Ltd (OTCBB:SITO) a known mobile engagement platform provider firm reported that Ladenburg Thalmann issued a research coverage on the Company. They have a “buy” rating on the stock. As per the financial services firm, the market of mobile location-based advertising is large and growing. With the commencement of the location-based mobile advertising platform, Sito Mobile is witnessing a much enhanced level of revenue growth.
Beginning in 2013, through a deal with a small private advertising tech firm, DoubleVision Networks, Sito Mobile started offering a geo location based, real-time bidding and aiming mobile advertisement product.
This new offering generated considerable interest in the marketplace and company’s Board decided last year to reposition Sito as a mobile ad tech platform. This plan started with the appointment of a new Chief Executive Officer, Jerry Hug and the acquisition of DoubleVision. After acquisition, the name was changed to SITO Mobile, Ltd.
Ladenburg Thalmann is of view that with the start of the new mobile ad platform, the company is experiencing an improved form of revenue growth. For FY2015, the financial services firm expects Sito revenues to come at $16.7 million. It will mark a 70% growth compared to the previous year. Conservatively, the firm projects revenue growth of almost 35% for FY2016 and anticipates revenues to touch $22.3 million.
In last quarter, the company recorded an operating profit of $42,000. Going forward, the planned model will help SITO to report GAAP profits by mid FY2016. With the current offerings, the company will be able to impact a more specific audience, increase customer engagements and record improved ROIs on mobile media programs.
In early morning trade on Tuesday, the stock price of Sito is trading with gains of 1% at $0.415. The stock extended its gains of last trading session, wherein it gained over 5% to close the trading session at $0.410.