May see a little more upward pressure today and Monday as the...

May see a little more upward pressure today and Monday as the new Bell Potter report came out yesterday, it had an amended target of 0.20c and removed their speculative view.

They were quite clear the Sewex solution while a good move wasn't factored in to the target as it isn't expected to return much if any revenue for 8 months in total (4-5 month delivery period and 3 month operating) while the proof of concept is achieved.

They note the water portfolio has a $2.8bn addressable market but this is obviously the very first application of Sewex, so we would have to assume if successful and contracts are awarded we should see a further re-rate on that alone.

Hurdles to some proper growth that I am keeping an eye on personally are:

• Gross profit margins to be brought back in line with a software company so we can start seeing ASX standard multipliers that suit a tech company come into play (this is being worked on and actively improving currently)
• A more clear pathway to profitability including the 100m ARR (would like to see some announcements for these plans, the 100m ARR is more psychological I feel and I do believe they will hit this over the next 24 months)
• rebalancing of the book, as are understandably quite airport heavy currently and they despite not being as dramatically affected due to covid as first thought, are still not a favourite until borders open (again, there appears to be a real effort to do just this at the moment with emphasis on mining contacts with the CEO advisor role and sewex being pushed forward)
• Finally EVS could do with a little more sex appeal, which again I think we are seeing already an improvement with the latest announcements and the world wide consensus on climate change, which even our smirking leader and his imaginary friend is starting to bow to international pressure.

I feel like if we can make gains in these areas we will see a real upwards re-rate and I can't help but feel pretty optimistic that they will.