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According to brokers, there is a group of ASX stocks that may be options to consider due to their current valuations.
Companies valued by several brokers could represent an opportunity for investors. But it could also mean that all of these brokers are wrong at the same time.
Several analysts said the two companies below could be opportunities:
Credit Corp Group Limited (ASX: CCP)
Credit Corp is a large debt collector that operates in both Australia and the United States. It also has a loan division in Australia and New Zealand.
The business is currently viewed as a buy by at least three different brokers, including Morgans, who has a price target on the business of $ 33.75.
In FY21, Credit Corp recorded near-record capital spending with the acquisition of Purchased Debt Ledger (PDL) from Limited collector’s house (ASX: CLH) and a return to credit, despite a temporary reduction in the supply of PDL induced by COVID.
ASX Stock said FY22 got off to a good start, with a record-breaking procurement pipeline contracted in July. Monthly settlement volumes have also started to increase.
Overall, the profit for fiscal 21 was driven by the US performance. Total revenue fell 1%, but ANZ Debt Purchase profit rose 11% to $ 54.1 million, and US Debt Purchase profit more than doubled to 17. $ 7 million. This helped total profit to rise 11% to $ 88.1 million.
In FY 22, Credit Corp expects to generate after-tax net income of between $ 85 million and $ 95 million, with PDL acquisitions ranging between $ 200 million and $ 240 million.
Based on Morgans numbers, the Credit Corp share price is valued at 22 times estimated FY22 earnings.
FINEOS Corp Holdings SA (ASX: FCL)
FINEOS describes itself as a global company providing software to the Employee Benefits, Life, Accident and Healthcare industries. It offers its customers tailor-made products. One of its offerings is called AdminSuite, which supports new business, invoicing, complaints, absences and policy administration, which enables “improved operational efficiency, increased efficiency and excellent service.” client â.
It is currently rated as a buy by at least three brokers, including Citi, which has an ASX technology share price target of $ 5.22. After a recent fundraiser, Citi believes the company is well funded to invest some equity in its current operations, as well as to try to find other potential companies to buy.
During FY21, FINEOS achieved a turnover of 108.3 million euros, an increase of 23.3%. It also saw its gross margin increase by 23% to 72 million euros.
In FY22, ASX stock expects revenue to be between â¬ 125 million and â¬ 130 million, with subscription revenue expected to increase by around 30%. He expects to be successful with his pipeline of cross-selling and upselling opportunities with existing customers and new earnings.
At the time of the fundraiser, FINEOS CEO Michael Kelly said:
Following a strong FY21 result, FINEOS continues to execute its strategic priorities and invest in new product development and recent acquisition integrations. Our growth expectations for FY22 are supported by a pipeline of cross-sell and up-sell opportunities with existing customers in addition to new name opportunities. The fundraising guarantees FINEOS the strength of the balance sheet and the financial flexibility necessary to aggressively pursue these opportunities and accelerate its growth.