- PMTS should appreciate above $75 per share in the next 12-18 months based on the market realizing the company’s earnings power is greater than $5 per share.
- In 2021, over half of the company’s revenue growth came from units driven by FinTech growth, market share gains, and contactless cards expanding ASPs, which should continue for years.
- Buying PMTS is an alternative way to participate in FinTech growth at a discount.
- PMTS stock is down on the market’s misinterpretation of business cyclicality, while we believe lower Q4 21 revenue is a return to normal seasonality in the prepaid card division and revenue will grow double-digits in 2022.
- We believe credit card producers have pricing power due to supply chain challenges that will enable them to offset much of the inflationary pressures faced today.
For further details see:
CPI Card Group: Deep Value With Strong Expected Growth In 2022