LEAT - Leatt: 52-Week Low Provides Attractive Entry Opportunity
2023-03-26 22:45:14 ET
Summary
- Leatt Corporation was a COVID darling stock that now trades near 52-week lows due to revenue growth deceleration and fears Leatt’s high growth days are over.
- We think Leatt can generate 5-15% revenue growth in the long term due to market share gains, new products, and industry growth.
- Leatt trades at 6.5x TTM PE and 4.4x EV/EBITDA, which is cheap compared to a recent acquisition of a competitor and the overall market.
- We rate LEAT stock a BUY with a target price of $19.3, representing 15% upside from current prices and a 16% IRR.
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Leatt: 52-Week Low Provides Attractive Entry Opportunity