JAT is 'Udderly Cowabunga'

I am part of a larger network of buyers who have been accumulating JAT with the consensus opinion it has upside to 5-7 cents in the short term. We think it has potential for much higher in the medium to long term but keeping expectations reasonable avoids disappointment. A research note was sent around our think tank group on JAT. I have permission to release this on Hotcopper and it can be re-distributed freely. It is our own opinion, not financial advice.

Several of our group made considerable profits trading ASX A2M in the early days. Using that as a benchmark for JAT serves as an interesting exercise. A2M's market capitalization is A$7.2bn with FY 2020 revenue of A$670m at margins of 27%. A2M is valued at approximately A$1.07bn per A$100m in revenues. Compare to JAT which is expected to do minimum A$100m in revenues at margins of 32.5% in FY 2021 with a market capitalization of only A$28m.

If JAT were to be valued on the same metrics as A2M it would be worth A$1.07bn. That would be 38 times the last traded price or A$0.87c a share.