Analyst Caleb Weng of PAC Partners maintained a Buy rating on Credit Clear Limited, retaining the price target of A$0.45.
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Caleb Weng’s rating is based on Credit Clear Limited’s demonstrated ability to achieve significant operating leverage, evidenced by a consistent 68% increase in incremental revenue translating to EBITDA over the past two years. This growth is attributed to the company’s strategic adoption of digital collections, expansion in scale, and disciplined cost management.
Furthermore, the onboarding of several blue-chip clients is expected to drive further revenue growth, although it typically takes 6-12 months for these clients to become profitable. The company’s focus on technology and industry dynamics positions it well to capitalize on opportunities within the contingent collection sector, which has a total addressable market of $400-$600 million. These factors, combined with a share buyback program and a strong foundation set for FY26, support the Buy rating and a price target of $0.45 per share.
In another report released yesterday, Shaw and Partners also maintained a Buy rating on the stock with a A$0.40 price target.