The reason is that market believes that aferpay will grow faster over next few years.
A2M is already a billion dollar company and market believes that its future rate of growth will be slower as compared to the past. At the current sale price for its product (it is a premium product) there is only limited growth opportunity through further market share gain in existing markets, it will grow but not at (100%).
Also the results from US & UK don't seem to be very impressive, we should know more once the full report and segment results are released.
A2M is a excellent business and it is performing very well, however the SP is fully valued, therefore unless they are able to demonstrate to the market that they will grow at greater than 50%+ growth rate for next 2 to 3 the SP is unlikely to go above A$12. It is most likely to range between $9 to $12 over next few months.
a2 NPAT, page-9
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Last
$7.05 |
Change
0.200(2.92%) |
Mkt cap ! $5.096B | |||
| Open | High | Low | Value | Volume |
| $6.90 | $7.05 | $6.89 | $9.342M | 1.335M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 3 | 5662 | $7.00 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $7.05 | 43467 | 7 |
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| Last trade - 16.10pm 29/07/2024 (20 minute delay) ? |
| A2M (ASX) Chart |