Hello Traders and Investors,
here comes my 5th buying recommendation and this one is, so far, my favourite as it presents an excellent risk/reward ratio and here is why:
(1)Fundamentals
Katapult is a small Fintech Enterprise (Market Cap $1,1B) that also operates in the Buy Now Pay Later (BNPL) space.
They are the market SHARE Leader in this huge and still underpenetrated market space. While other bigger competitors
like Afterpay, Affirm and Klarna focus on prime consumers Katapult is currently the only non-prime POS Lease Financing Platform solely focused on e-commerce.
KPLT is trading at much lower multiples than its competitors despite growing faster and having reached 169% Revenue Growth YoY and having served 1,6 Million consumers that already transacted on its Platform. And more important this Fintech is one of the few new breeds with an already positive Net Income Margin (9,46%, EPS $0,41 and 27,69 PE), therefore so far KPLT is already profitable! It also is expected to continue growing on a high pace as this market space has a huge TAM Volume & Growth Rate.
(2)Technicals:
KPLT reached its ATH around $19,50 on February 16th, since then it has been consolidating having reached its lowest quote of $9,75 on June 22nd. Nevertheless since then its Trading Volume has substantially increased and consequently pushing its stock price higher up to $11,31 (plus another 6% or $11,99 in Fridays After Market).
Technically speaking, I agree that it would be desirable first to see a retest of the low before initiating a position, however the reaction to the upside in the last days has been so expressive that one could risk losing a chance like this to jump in at such an attractive entry point. Therefore I recommend to those, who are willing or interested in getting long, to do so with only 50% of your intended position, because if the stock should in fact retest its low one could average down.
Anyway, now KPLT needs first to overcome the 200 day EMA at $12,42 (Target 1), which should already happen in the week ahead if the overall market doesn't deteriorate. Next Target then would be the yellow line at $15 and after that having consolidated it should aim again its ATH at $19,50. Remember that although there is strong support around $10 that it shouldn't be lost, otherwise new lows would be in sight.
Hope you liked this analysis and feel free to comment or leave your opinion about this one.
here comes my 5th buying recommendation and this one is, so far, my favourite as it presents an excellent risk/reward ratio and here is why:
(1)Fundamentals
Katapult is a small Fintech Enterprise (Market Cap $1,1B) that also operates in the Buy Now Pay Later (BNPL) space.
They are the market SHARE Leader in this huge and still underpenetrated market space. While other bigger competitors
like Afterpay, Affirm and Klarna focus on prime consumers Katapult is currently the only non-prime POS Lease Financing Platform solely focused on e-commerce.
KPLT is trading at much lower multiples than its competitors despite growing faster and having reached 169% Revenue Growth YoY and having served 1,6 Million consumers that already transacted on its Platform. And more important this Fintech is one of the few new breeds with an already positive Net Income Margin (9,46%, EPS $0,41 and 27,69 PE), therefore so far KPLT is already profitable! It also is expected to continue growing on a high pace as this market space has a huge TAM Volume & Growth Rate.
(2)Technicals:
KPLT reached its ATH around $19,50 on February 16th, since then it has been consolidating having reached its lowest quote of $9,75 on June 22nd. Nevertheless since then its Trading Volume has substantially increased and consequently pushing its stock price higher up to $11,31 (plus another 6% or $11,99 in Fridays After Market).
Technically speaking, I agree that it would be desirable first to see a retest of the low before initiating a position, however the reaction to the upside in the last days has been so expressive that one could risk losing a chance like this to jump in at such an attractive entry point. Therefore I recommend to those, who are willing or interested in getting long, to do so with only 50% of your intended position, because if the stock should in fact retest its low one could average down.
Anyway, now KPLT needs first to overcome the 200 day EMA at $12,42 (Target 1), which should already happen in the week ahead if the overall market doesn't deteriorate. Next Target then would be the yellow line at $15 and after that having consolidated it should aim again its ATH at $19,50. Remember that although there is strong support around $10 that it shouldn't be lost, otherwise new lows would be in sight.
Hope you liked this analysis and feel free to comment or leave your opinion about this one.