PAC Partners analyst Caleb Weng maintained a Buy rating on Credit Clear Limited today and set a price target of A$0.45.
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Caleb Weng has given his Buy rating due to a combination of factors that highlight Credit Clear Limited’s potential for growth and profitability. The company has implemented a cost-out program expected to enhance operating leverage, with benefits likely to manifest in revenue and margin expansion by FY26. This is supported by previous investments in client acquisition and onboarding, which are anticipated to yield results as new clients typically take several months to become profitable.
Furthermore, Weng notes the company’s strategic position in a market with limited tech-based solutions and significant potential for growth, given the $400-$600 million total addressable market for contingent collection. The company’s financial performance also supports this outlook, with underlying EBITDA surpassing expectations, an expanded EBITDA margin, and a solid revenue increase. Additionally, Credit Clear’s strong cash position provides flexibility for future growth initiatives, reinforcing the Buy recommendation.
According to TipRanks, Weng is a 4-star analyst with an average return of 14.7% and a 60.53% success rate.