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Writer's pictureMark Watson-Mitchell

Tremor International (LON:TRMR) – causing much more than a tremor, this was a seismic shift

Last Monday saw this global advanced video advertising technology group storming upwards in price following its Trading Statement.


Substantial customer momentum has built up in the second half of this current year to the end of this month. And that is despite the dreaded Covid-19.


Record revenues were generated in both October and November, prompting the group to predict that it will achieve between 37% to 43% sales increase in its H2.


Estimates for the full year are now upgraded to around $395m, some $50m better than predictions made in October.


Brokers to the £451m capitalised company, finnCap, are now looking for pre-tax profits for this year of $24.4m ($40m) and then $37.2m next year, worth 14.7c and 21.4c per share in earnings.


They upped their price objective from 500p to 700p on the back of the statement from the company.


Tremor operates a programmatic advertising platform that is focussed on digital video and CTV advertising.


The group will be demonstrating the capabilities of its cloud-based platform on a finnCap Tech Virtual Demo for Institutional Investors on Wednesday, 9 December at 3.00 p.m. UK time.


That demo will be recorded and subsequently available to all investors at Tremor's Investor Relations website and https://www.finncap.com/sector-expertise/technology


Way back in January the shares were trading at 150p, they fell to a low of 51p in late March. By early August they had recovered to 126p, then crept slowly up to 223p before Monday’s Statement.


In reaction to the good trading news, higher revenue and profit estimates, the shares leapt to 305p at one stage, before slight profit-taking clipped them back to 293p by Monday night.


The shares closed much higher again yesterday at 337p.


That really is a very satisfactory performance, more than doubling in less than a year.

Investors would probably do well to only buy the shares on the dips.



(Profile 16.01.20 @ 156p set a Target Price of 235p*)

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