Alright folks, I've been getting a lot of requests to post an updated take here, but I thought I'd give a good solid 24 hours for all of this to settle in and digest the announcement. I must confess it is not easy to contain the excitement of making 3x in 5 weeks. Has anyone spotted the bloopers in the clarification announcement today? I bet management was equally excited.
So a couple of reactions:
1. The announcement of a 5 year contract, while not quantifiable at this stage, does provide comfort in validating the value proposition as well as the quality of the team's execution and product development.
2. This should help the go-to-market strategy of the company with Merchants but it is NOT a silver bullet.
So, I made the call that I thought 1.30/share was a fair price to pay based on a set of assumptions (that you are free to tweak yourself - its early days). I also said I could see this stock trade up to 2.00 (or fall to 60c). Drawing out some longer projections I can see the feasibility of a $1.60 - $2.10 share price if we have patience in applying BNPL peer multiples (APT, Z1P) to Dec-21 numbers or June-22:
Again, alot of growth baked into the assumptions and lots of uncertainty here. Enjoy.
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