- PMTS could still appreciate by >3x from current ~$17 to >$50.
- Fintechs/challenger banks are increasing usage of credit/debit cards and not posing secular threats.
- Re-listing on the Nasdaq and prospective sell-side analyst coverage are near term catalysts.
- We now believe the company could earn $3.26 cash EPS. Based on 2021 estimates, the company is trading around 5.3x cash earnings with leverage of approximately 3.44x.
- A 20x cash EPS multiple should easily justify a stock price over $50 per share as the forward P/E ratio on the Russell 2000 is 32x.
For further details see:
CPI Card Group Is A Deep Value Stock Close To Rerating Higher