Shares of Triterras (NASDAQ:TRIT) soared today, up 16% as of 3:00 p.m. EST, after the company received a vote of confidence from Wall Street. Oppenheimer reiterated an outperform (equivalent to buy) rating alongside a price target of $23.
Triterras has come under heavy pressure after revealing last week that a major client, also founded by Triterras founder Srinivas Koneru, could be forced into bankruptcy by a creditor. The stock rallied earlier this week after the company announced that Koneru intended to take advantage of the volatility and buy shares in the open market. Oppenheimer had thrown a cover on Tritteras with an outperformance rating just days before all the drama.
During a conference call to provide updates to investors yesterday, the fintech company reiterated its guidance for the current fiscal year, which calls for revenue of around $56.6 million and net profit. approximately $32.9 million. Triterras also said fiscal third-quarter revenue is expected to be about $17 million and net income is expected to be $10 million.
“Overall, results and momentum appear strong, and the full-year guidance calls for 235% annual and 142% growth in revenue and net income from a low base,” the company wrote. Oppenheimer analyst Owen Lau in a research note to investors. “Most importantly, while the company is growing faster than other high-growth markets, the stock is trading at a lower price than low-growth markets on average.”
Lau believes that Triterras offers an attractive risk/reward profile for long-term investors, thanks to strong profitability and a massive total addressable market.
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