In a report released on March 21, Caleb Weng from PAC Partners reiterated a Buy rating on Credit Clear Limited (CCR – Research Report), with a price target of A$0.45.
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Caleb Weng’s rating is based on Credit Clear Limited’s strategic positioning and growth potential. The company is in the process of onboarding tier-1 clients, which, once integrated, are expected to contribute to sustainable top-line growth. This onboarding process is anticipated to enhance operating leverage and increase volumes, providing a solid foundation for future expansion.
Moreover, Credit Clear is poised to capitalize on the underinvestment in technology by incumbents, positioning itself as a key player in a market with a total addressable market of $400-$600 million for contingent collection. The company’s tech-based solutions and scalability offer a competitive advantage, and potential opportunities such as the end of the federal government’s ban on outsourced debt recovery and geographical expansion further bolster its growth prospects. Despite risks such as market dynamics and regulatory changes, the company’s strategic initiatives and market opportunities underpin the Buy rating.