Daniel Stewart says Planet Payment has strong outlook in 2010, maintains 'buy' and 151p target

Following the announcement of Planet Payment’s (AIM: PPT) trading update for year ended 31 December 2009, Daniel Stewart and Co maintained its 'buy'recommendation and reiterated its 151p price target.

The broker said that Planet Payment is a strong play in the cyclical upswing in international corporate and leisure travel. According to Daniel Stewart the company has a well-invested proprietary technology and a strong outlook on both new client and geographic expansion.

In the trading update, Planet Payment said it expects a 30% increase in revenue for the full year to over US$47 million for 2009. Daniel Stewart said that the estimated revenue growth implies a marginal outperformance against its current estimate.

The company said that the revenue growth was led by new merchant deployments, with new processors and banking customers in the United States, Greater China, India, Malaysia, and Taiwan. Revenues from Planet Payment’s core multi-currency processing increased by more than 40%, to over US$33 million. The payment and data processing specialists also estimated that it has achieved positive adjusted earnings in Q4, representing a third consecutive positive quarter. Planet payment expects to report positive adjusted earnings for the full year. 

Daniel Stewart said it was heartened by Planet Payments expectations of positive earnings for the FY09. According to the analyst’s note the company’s run-rate and robust pipeline of new clients into 2010 supports its existing growth forecasts, in which it currently estimates 2010 revenues of $68.7 million.  http://www.proactiveinvestors.co.uk/companies/news/12463/daniel-stewart-says-planet-payment-has-strong-outlook-in-2010-maintains-buy-and-151p-target--12463.html