Already fully valued ?

Since its listing, Cettire stock has been very volatile.

The reasons are quite well known :
- a booming business,
- a share price, which has first benefited from the strong appetite of the market for growth stock and then rejected them (when interest rates began to rebound significantly),
- a controversial business model,
- a major shareholder (founder) who keeps reducing his holding.

After a decrease of around 90 % vs its pick, the stock had a significant rebound (X 5.8).
The rebound to the low is mainly explained by the fact that the company has now found the right balance between growth and marketing expenses.
Marketing investment has decreased to high single digit (according the last communication of the company), while top line growth (organic only) has remained significant (+ 70 % yoy for Q1 23 and + 80 % in Oct 22).
This has enabled the company to reach a decent adjusted EBITDA margin (8 %+) and a significant level of free cash flow (net cash increased by around 17 m between June and Oct 22).

One of the risk going forward : Dean Mintz could continue to sell a large part of his holding, as he still owns 45.9 % of Cettire (at 18/11/22) and it will be the end of the escrow period for a significant part of his holding after the company releases its H1 FY 23 results in February 23.
Given this risk, it is quite surprising that the stock has so much rebounded (+ 50 % in 1 month), while the market is well aware of this risk.