What a fantastic result by AXL today and another profit upgrade to $7M NPAT this year. The company has brought forward IT spend to the current year which should see significant earnings leverage in 2019 and beyond. In addition the long awaited securitization facility is due by March. Broker upgrades of earnings now expecting 14c eps this year growing to 25c in 2020. Their PT has increased to $2.50 but in my mind the company is worth $4. Expect most fundies to scramble around for stock in the next few months as the company is now on the $100m cap radar. I don't see why AXL shouldn't trade on APT and Z1P multiples, considering they operate more as a fintech rather than a traditional asset finance company, which will then value AXL at $7.50!
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