Boku, Inc.

Boku, Inc. (LON: BOKU) is an FTSE AIM 100 index listed provider of global mobile payment solutions.

As per our previous recommendation on BOKU as on 30 September 2022, a ‘Speculative Buy’ rating on the stock at GBX 103.50 was given, and noted below are the details of support/ resistance provided in our previous report:

Investment Rationale – SELL at GBX 132.00

• Profit Booking: BOKU’s stock price has now breached the previously recommended resistance 2 level, and it is presenting a good exit opportunity.
• Continuing Operations: On a consolidated basis, there was an YoY decline in revenue, gross profit, and adjusted EBITDA in H1 FY22.
• Overvalued Multiples: On a forward 12-month basis – EV/EBITDA, Price/Earnings, Price/Cash Flow, and Price/Book multiples are higher than median of the Industrials sector.
• Macroeconomic Risks: Rising inflation and its pressure on household living can also impact the consumer disposable income. Moreover, political instability and Brexit crisis can keep the economy and the equity market under pressure.
• Technical Indicator: BOKU’s stock price is hovering around its upper Bollinger band and indicating an overbought stance.

BOKU’s Daily Chart

 (Source: REFINITIV, Analysis by Kalkine Group)

Considering the previously recommended resistance 2 level achievement, overbought technical stance and risks associated, it is prudent to exit at the current levels. Hence, a 'Sell' rating has been given on the stock at the current price of GBX 132.00 (as of 28 October 2022, at 9:51 AM GMT+1). 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 28 October 2022. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.

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