yes. I expect a significant rerating, as they are in a nice spot where they have both volume and price increases, while they have proved to have a good control of their costs during the last years. The main element I am following is the free cash flow and expect them to show a significant improvement of their free cash flow this year, while they had already a decent free cash flow in FY 21 (free cash flow of 2.2 m, which represents a free cash flow yield of 12 %).
Even if they reach my targets in terms of profitability, the stock will probably continue to have a low rating by the market, as they are in a tough sector (oyster farming). One of the main risks : natural disasters can have a significant impact on pearl production. All Atlas Pearl farms are located in Indonesia, where earthquakes are frequent.
ATP Price at posting:
3.5¢ Sentiment: Buy Disclosure: Held
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