“With roughly US$2.2 billion in net cash balance as of June and annual cash burn of about US$1 billion per annum based on 2QFY2022 performance, we see the possibility that GoTo will need some external financing over 2024-2025. Our forecasts indicate a peak financing requirement of about US$500 million.
Deutsche Bank Research analyst ReenaVerma Bhasin has initiated a “buy” call on GoTo with a target price of IDR250 implying an estimated upside of more than 20% from its current trading price.
In her Oct 18 note, Bhasin wrote that the vagaries of rising interest rates have put the spotlight on GoTo’s cash burn and financing needs. However, she thinks that market worries about GoTo’s financing requirements are overdone.
