On Tuesday, Susquehanna initiated coverage on shares of Kaspi (NASDAQ:KSPI), a Kazakhstan-based fintech company, with a positive rating. The firm set a price target of $154.00 for the stock, highlighting Kaspi's significant role in the daily financial transactions within its home market.
Kaspi's mobile application is recognized as one of the world's leading "super apps," according to Susquehanna. The app encompasses a wide range of financial services and payments, both online and offline, that are essential to the Kazakhstani population. The app's extensive use has allowed Kaspi to achieve merchant take rates of more than 10%.
The firm's analysis suggests that approximately 50% of Kazakhstan's annual income is processed through the Kaspi Super App. This high level of engagement has resulted in impressive daily active user to monthly active user ratios (DAU/MAU) of around 65%, as well as industry-leading profit margins nearing 45% at the net income level.
The continuous enhancement of user engagement and transaction volumes is supported by Kaspi's expansion into adjacent services. These include e-Government, e-Grocery, auto and real estate classifieds, and merchant financing, which further solidify the app's position in the market.
Susquehanna's valuation of Kaspi is based on approximately 8 times the company's earnings per share (EPS), which they consider reasonable for a business with such a robust and effective monetization model. The positive outlook reflects confidence in Kaspi's current business trajectory and its potential for sustained growth and profitability.
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