CCBI Issued Updated Report on iClick (NASDAQ: ICLK)

Maintained Outperform and Raised Target Price from US$10.10 to US$18

CCBI issued an updated report on iClick Interactive Asia Group Limited (NASDAQ: ICLK) on 18 January 2021, reiterating its Outperform rating with a target price of US$18, which represents an upside of 53% from the closing price of US$11.79 as at 15 January 2021.

CCBI indicates that online marketing solutions has been a cash cow for iClick, and it is now developing new marketing solutions through the emerging marketing channels such as multi-channel networks, KOL marketing and short-form video. This would boost business scale and achieve better profitability, and CCBI expects Marketing Solutions revenue will grow 18% and 17% in 2020F and 2021F, respectively.

Whereas its SaaS-based enterprise solution, CCBI believes iClick has a bright outlook for the business. iClick is taking steps to (1) enrich its product offering by launching its new standard SaaS platform iSCRM, (2) explore new APAC markets and (3) expand its partner network with Tencent Cloud and Tencent Culture and Tourism to tap into the tourism operation segment. CCBI expects SaaS-based enterprise solution to grow 165% and 94% in 2020F and 2021F, respectively.

With its diversifying marketing solutions, growing SaaS business and strong partner network, CCBI reiterates its Outperform rating, and raises the target price from US10.1 to US$18. It is based on SOTP valuation, with US$2.50 for marketing solutions based on 20x non-GAAP earnings and US$15.50 for enterprise solutions based on 15x price-to-sales.