Clare Capital is providing an upwards revision of our 12 month target price for Pushpay to $4.92 per share, almost 25% above the current price of $4.00.
Along with a calibration of financial performance to date, this upwards revision is based on the inclusion of volume based transaction fees. As way of a simple explanation; most SaaS companies provide the client with a product that makes an aspect of their business easier in return for a monthly recurring fee. Pushpay do this via a product which makes donating and paying easier, but they also collect a percentage of the transaction volume passing through their platform – this is a key element of their story and a key differentiator to many other SaaS companies.
Company background: Pushpay provides mobile commerce tools that facilitate fast, secure and easy non-point of sale payments between consumers and merchants. Pushpay services three target markets: the Faith Sector; Non-Profit Organisations (NPOs) and Enterprises. In the case of the Faith Sector, donations underpin the viability of their organisation. Pushpay’s product targets electronic and, in particular, mobile donating, or as the Company’s slogan says “What if giving was simple?” The business model, in principle is simple, adding value to the churches by providing software applications that make it easier for the attendees to donate/“give”.
Full release here