E&P Capital starts coverage of Australia's Cettire on potential strong growth

Cettire

08/01/2024 02:41

** Analysts from E&P Capital initiative coverage on
Australian mid-cap retailer Cettire  CTT.AX  with a "positive"
rating and a price target of A$3.48 per share 
    ** The brokerage says the co is well-placed to post strong
growth for at least the next 3-5 years, after it achieved
profitability and positive cash flow in H1 FY23 
    ** Co reported HY23 net profit of A$8 mln ($5.38 mln) vs a
loss of A$8.3 mln in HY22 
    ** E&P Capital expects earnings per share and free cash flow
to grow by a compounded annual growth rate of 39% and 30%,
respectively, over the next three years; sees FY24 adjusted net
profit of A$26.4 mln  
    ** The broker additionally expects a rise in active
customers and rising investment in proprietary software to be
core drivers to deliver strong profit growth
    ** Cettire stock more than doubled in 2023

    ($1 = 1.4879 Australian dollars)

 (Reporting by Archishma Iyer in Bengaluru)
 ((Archishma.Iyer@thomsonreuters.com;))