Mogo Finance Upgraded to “Speculative Buy”

Mogo Finance Technology Inc.’s (OTCQX: MOGOF) (TSX: MOGO) stock was upgraded from a “hold” to a “speculative buy” by Canaccord analyst Taylor Arnold, saying that the company has a “unique opportunity to connect cryptocurrency to everyday banking.”

The Vancouver based company is focused on building technology dedicated to financial services. Currently, Mogo’s platform offers five products designed to help consumers control their finances such as its MogoAccount, in addition to its newly added MogoCrypto.

“Mogo has demonstrated its ability to quickly adopt new technologies and products to its platform. The company is in the process of fleshing out its blockchain / cryptocurrency offering but the pieces are beginning to fall into place (including the recent mining announcement w/ DMG),” said Arnold.

MogoCrypto currently has approximately 500,000 users and still continue to grow. With the growing user base and how effectively Mogo can issue its products could drive significant value for shareholders.

Arnold says Mogo was “re-inflated” due to the cryptocurrency craze, but now the hype has begun to die down, which can directly impact Mogo’s blockchain and cryptocurrency offering. Regardless of the decline, Arnold still sees value within the company.

"We believe there remains significant upside to the company continuing to invest in this platform. We believe those investments will likely depress near-term profitability while increasing long-term earnings potential.” said Arnold, “We believe these investments and improving visibility on how Mogo intends to better convert its user base to paying customers should add value for shareholders."

Arnold now upgrades his price target from $7 to $7.25, while the average remains $9.63.

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