Tuesday, March 22, 2022
Digerati Technologies (DTGI)
A Surprising Reaction To A Solid Quarter; Raising Price Target
Digerati Technologies, Inc. (OTCQB: DTGI) is a telecom and technology provider of diverse, carrier-grade, Only in the Cloud™ communication and network solutions including Unified Communication as a Service, cloud telephony, cloud WAN, cloud call center, cloud mobile, and delivery of digital oxygen on its fiber/mobile broadband network. Digerati has developed a robust integration platform to fuel mergers and acquisitions in a highly fragmented market as it delivers flexible, cost-effective services with enterprise-grade quality and reliability. A multi-year recipient of Deloitte’s Fast500 and Fast50 Awards for one of the fastest growing technology companies in North America, Digerati has become an expert at successfully merging and managing subsidiary operations since 2015. The Company’s impressive tech-stack serves 28,000 business users on its platform and its dynamic channel program includes over 300 channel partners that serve as a conduit for sales growth. Digerati has continuously increased customer adoption while serving diverse industries including Healthcare, Banking, Financial Services, Legal, Real Estate, and Construction. Digerati currently has a strong platform for growth throughout Texas and Florida, the 2nd and 4th largest state economies by GDP in the U.S. The Company’s clean and clear fundamentals, combined with its clearly defined growth plan, disciplined acquisition strategy and seasoned leadership team is expected to increase shareholder value as it enters the next phase of its corporate development plan. For more information, please visit www.digerati-inc.com.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Solid Q2 results. Digerati reported better than expected fiscal second quarter end January 31 results, with total company revenues of $4.019 million, versus our $3.790 million estimate. Adj. EBITDA was also better than expected at $0.364 million versus our $0.309 million estimate. The results benefited from one month contribution from the Skynet acquisition, but results were better than expected after adjusting for that contribution.
Executing the roll-up strategy. The company has completed two acquisitions since the start of the year, SkyNet Telecom and Next Level. These acquisitions have augmented its customer reach in Texas and expanded operations into California. and now serves over 4,000 business customers and 45,000 users …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
