head scratching, page-6

This is an extract from the broker report that caused all the excitement yesterday.

	Last Price:A$ 0.13
1	Valuation:A$ 0.30
2	Recommendation:Buy
3	Risk Assessment:Higher

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In Cod We Trust

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We initiate coverage on Murray Cod Australia (MCA) with a BUY and target price of $0.30 per share, implying a 12-month TSR of 131%. MCA holds a unique position in the global fish market thanks to its premium AQUNA brand of Murray Cod which is differentiated by 1) its superior taste, 2) the versatility of its preparations, 3) strong ecological sustainability and 4) stable supply availability (important for retailers and restaurants alike). Recent investments in working capital and the growing process place the company on the precipice of an inflection point in fish production and sales, seeing the stock significantly undervalued. MCA has more than one million fish in existing ponds, helping provide customers with consistent supply - a relative rarity in the premium fish market. Burgeoning retail and restaurant relationships will drive compelling medium-term revenue (FY22-25 41% CAGR) and EPS growth (FY22-25 117% CAGR), seeing MCA’s PE drop to 5.3x by FY25. As revenues prove out, we expect a strong rerate. Buy.