Otello’s Q1 results were broadly in-line with estimates. We have though cut our estimates slightly as Q2 guidance of flat revenue growth y-y was below expectations. We continue to view Otello as a break-up-case. Otello still aims to IPO Bemobi, otherwise a fallback payment to its EPs will occur by year-end. Due to high uncertainty during Covid-19, and limited visibility, we maintain our Hold rating though we acknowledge the upside to our target price.
10 May 2020
Break-up-case, though uncertainty persists
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Break-up-case, though uncertainty persists
Otello Corporation ASA (0FI5:LON) | 0 0 0.0% | Mkt Cap: 1,363m
- Published:
10 May 2020 -
Author:
Henriette Trondsen -
Pages:
12
Otello’s Q1 results were broadly in-line with estimates. We have though cut our estimates slightly as Q2 guidance of flat revenue growth y-y was below expectations. We continue to view Otello as a break-up-case. Otello still aims to IPO Bemobi, otherwise a fallback payment to its EPs will occur by year-end. Due to high uncertainty during Covid-19, and limited visibility, we maintain our Hold rating though we acknowledge the upside to our target price.