RE:Canaccord - 60 cent PT That's a nice target. I'm thinking 60 cts, at a minimum, in a year's time. I think that a lot of investors will realize that this stock is a good place to be as the economy finally reopens for good. Look at what happened to retirement home stocks like Extendicare when it was clear vaccines were working... went on a 60% run. Not bad for a “boring” stock.
Otherwise, I got confused by their usage of the term “originations”.
When I search the web, I find it usually means the one-time fee that is payed to the loaning company for putting together the loan, checking the applicant’s credit, etc.
In the case of Axis, I think they simply mean the total value of new loans issued (originating) during the quarter. (Correct me if I’m wrong)
Of course, most of their revenue comes from interest payed on the loans, so that the total value of new loans they contract in a quarter must be added to the much larger total value of all loans under their management. The new interests from the originations therefore represents only a small fraction of their total interest income. They need to continue the high growth in originations (and do so at a higher rate than defaults+close outs) for a significant impact on quarterly revenues to start showing.
Great to see we’re inching higher...
Cheers,
Hen