The Pushpay Holdings Group Ltd (ASX: PPH) share price has been on form this month.
Since the start of March, the donor management and community engagement platform provider's shares have risen approximately 10%.
This means the Pushpay share price is now up 127% since this time last year.
What is Pushpay?
Pushpay is the leading donor management and community engagement platform provider in the faith and not for profit sectors.
The company started life as a mobile giving solution that made generosity easy and simple. Since then, it has grown to be a full mobile giving and engagement solution that serves over 7,000 churches around the world, connecting them to the local community and encouraging generosity.
While this is a niche market, it certainly is a lucrative one. For example, in FY 2020, Pushpay delivered a 32% increase in revenue to US$129.8 million.
But that is still only scratching at the surface of its overall market opportunity. Management estimates that the entire US medium to large church market is worth US$2 billion at present and has set itself a target of winning a 50% share of this market in the future.
That'll be worth US$1 billion and is a sizeable ~eight times greater than FY 2020's revenue.
How will Pushpay achieve this?
The US$87.5 million acquisition of church management system provider Church Community Builder is expected to help Pushpay achieve this goal. This acquisition has strengthened its offering and led to the launch of ChurchStaq.
Churchstaq is the combination of its Pushpay and Church Community Builder software, bringing together digital giving, donor development, church apps, and church management software (ChMS). This delivers a fully integrated engagement platform to users. Demand has been strong for the offering and looks set to underpin further stellar sales and earnings growth in FY 2021.
Can the Pushpay share price go higher?
One broker that still believes the Pushpay share price can go higher is Goldman Sachs. Its analysts currently have a buy rating and ~$2.59 price target on its shares.
Based on the latest Pushpay share price, this implies potential upside of 42% over the next 12 months.
