DSK Currently $2.65 per share which equates to ~$160M MC
1HFY21 EBIT Guidance of $26M | Revenue Guidance $90M
$33.5M Cash after 1HFY2021 | Enterprise Value of $129M
ST Target (30-60 days) = $4 per share which equates to $250M MC
Main Catalyst = 1HFY21 results being released and people valuing DSK as a growth stock, not a value
Supporting Catalyst = Strong cash balance to accompany an expected store expansion narrative which I believe management will spout this scheduled earnings presentation
Rerate to $250M MC with $26M 1H Ebit passes the fundamental analysis/comp insanity check for fair value based on comparable companies trading valuations
LT Target (9-12 months) = $6.50 per share which equates to $400M MC
12 month EBIT FY21 estimate of $40M = EBIT comp multiple of 8x = $320M MC (100% upside)
Main Catalyst = FY2021 results that follows similar growth (60/40 splits between the two halves given cyclical nature)
Supporting Catalyst = Cemented MD&A on store expansion
All personal opinion, DYOR, not financial advice.
DSK Price at posting:
$2.65 Sentiment: Buy Disclosure: Held
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