Benchmark starts FingerMotion at Buy ahead of VAS and Big Data commercialization

As previously reported, Benchmark analyst Fawne Jiang initiated coverage of FingerMotion with a Buy rating and $5 price target. FingerMotion is a mobile data specialist company providing mobile payment and recharge solutions in China whose mobile top-up business “serves as a stable and growing source of revenue and a gateway for data collection,” the analyst tells investors. The company’s growth outlook is set to “accelerate meaningfully” in FY24 and FY25, underpinned by the imminent commercialization in VAS and Big Data, while the recurring nature of revenues in those segments should lead to strong operating leverage, the analyst added.