Caleb Weng, an analyst from PAC Partners, maintained the Buy rating on Credit Clear Limited (CCR – Research Report). The associated price target remains the same with 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 promising financial outlook. The company has reaffirmed its EBITDA guidance of $7 million for FY25, indicating confidence in its financial performance despite a slight revision in revenue expectations. This adjustment still reflects a healthy organic growth rate of 16% from FY24, suggesting strong momentum that is expected to continue.
Furthermore, the implementation of a cost rationalization strategy, resulting in significant cost savings, enhances the company’s operating leverage. The anticipated record revenues for May and June 2025, along with the onboarding of tier-1 clients and increased volumes from existing clients, support a positive outlook. Additionally, the industry dynamics and underinvestment in technology by competitors present an opportunity for Credit Clear to capture a larger market share. These factors, combined with a favorable free cash flow yield, underpin the Buy recommendation with a price target of $0.45 per share.