Needless to say but I just found this from 9 Nov 21. GLTA
Raymond James analyst Stephen Boland thinks it is an “ideal time” for investors to own Propel Holdings Inc., seeing the Toronto-based online financial technology company entering into a “period of high Combined Loans and Advances growth with an associated increase in revenue.”
“Despite some concerns regarding the credit performance of sub-prime borrowers in times of economic uncertainty, studies have shown this segment of the lending market outperforms the prime and near-prime segments in terms of delinquencies (on a relative basis),” he said.
“The robust growth in the portfolio has been driven by an expansion of products, distribution channels, and facilitating access to credit in additional U.S. States. All are contributing to a 91-per-cent CAGR [compound annual growth rate] in Combined Loan and Advance Balances from 2018 to 2Q21. Combined Loan and Advance Balances have increased to $80-million, up from $13-million over that time period.”
Expecting “robust” growth over the next 18 months and the announcement of a quarterly dividend before the end of 2021, Mr. Boland initiated coverage with an “outperform” rating and $15 target, becoming the first analyst on the Street to publicly cover the stock.
It began trading on the Toronto Stock Exchange on Oct. 20 following an initial public offering.
“We are assuming 62-per-cent growth in revenue in 2022 compared to 2021,” he said. “As the business scales, the impact to net income accelerates, as well. We are estimating net income increases to $34.9 million in 2022 up from $6.2 million in 2021.”