PublicInvest maintains outperform on N2N Connect

KUALA LUMPUR: PublicInvest Research said it is favourable on N2N CONNECT BHD's prospects and maintained its outperform call on the stock while awaiting more details on its latest stake acquisition plan.

N2N had announced that it plans to acquire 28% interest in Australian-based OurMoneyMarket Holdings Pty Ltd for A$2.8mil cash.

"While the company has made earnings accretive acquisitions to the benefit of all shareholders in the past, the most recent being Hong Kong-based AFE Solutions Ltd which was synergistic, we reserve judgment on this particular one pending further clarity from management."

PublicInvest Research maintained its target price on the counter at RM1.53, tagged to a 25x price-earnings multiple to FY18 earnings per share as the group continues to make inroads in its ongoing and planned initiatives.

The research firm said there may not be immediate direct financial benefits as OurMoneyMarket is at its infancy state and P2P lending has had limited successes to date. 

However, PublicInvest Research said the group has proved itself in value creation and is optimistic that this venture is no different.
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