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January 24, 2024, ST. PETERSBURG, FL – Water Tower Research (www.watertowerresearch.com) has published an Initiation of Coverage Report on SurgePays, Inc. (NASDAQ: SURG) titled, “Wireless Provider Turns Emerging Fintech Platform, Initiating Coverage of SurgePays”. The report can be accessed here.
SurgePays, Inc. is a forward-looking financial technology and telecommunications firm dedicated to serving the underbanked. Its wireless subsidiaries provide mobile broadband, voice, and SMS services to subsidized and direct retail prepaid customers primarily through the ACP. Its innovative blockchain fintech platform transforms local stores into tech hubs for underbanked/underserved communities.
The current primary line of business for SurgePays is distributing wireless broadband services to qualifying individuals and families under the ACP. Through its two brands, Surge Phone Wireless and Torch Wireless, SurgePays has built a profitable $100 million annual business in just a few short years. Longer term, SurgePays could leverage this base in the ACP segment into the much larger prepaid wireless market. It is looking to build on this success in 2024 as it ramps its efforts in its prepaid wireless brand LinkedUp Mobile.
Trading at a P/E multiple of 3.9x 2024 consensus EPS of $1.91, SurgePays trades at a significant discount to its wireless/comm services peers, which trade at nearly 17x P/E on 2024 consensus EPS and a steep discount to the broader S&P 500 Index. Similarly on an EV/EBITDA basis, SurgePays, which trades at ~3x CY24 consensus EBITDA of $34 million, is much less than its wireless/comm services peers of ~6x.
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