CLG – Close the Loop
Canaccord Genuity said last June before the annual results came out that it was undervalued.
CLG also trades at a modest valuation with a forward FY25 P/E ratio of 6.2x and EV/EBITDA of 3.6x. This is significantly lower than its peers, making it an undervalued investment with potential for substantial returns, says Canaccord.
Canaccord has 65c price target on Close the Loop. CLG recycles print cartridges and innovates on sustainable packaging.
They did however make the comment:
In terms of the risks of investing in the stock, Canaccord warns that CLG could be something of a “black box”.
In Canaccord’s view, with operations in many different verticals and by virtue of the number of acquisitions CLG has made over time, the business is complex for its size.
“As a result, the market may lack early visibility should issues emerge in one or more parts of the business in the future, and this may contribute to the modest valuation metrics which the market attributes to the shares.”
Edit: the extracts are from a Stockhead article
