Sidoti & Company, an independent research provider and one of the leading ones in the Wall Street, started analyzing Freedom Holding Corp. (FRHC) stock and already assigned a target price to it: $76.
In its report, Sidoti & Company rated Freedom Holding Corp. as 'moderately risky'. Over the last 12 months, FRHC stock went up by as much as 178%, but the analysts still believe it may continue rising. 'There is much potential ahead for more rise,' the report says. 'The company is using the business environment in the markets very efficiently. Besides, the integration of Prime Executions, a US based broker, is a great asset.
Sidoti & Company experts also believe that the rising earnings, larger margin, and moderate operating debt burden will help the stock rise. The $76 target price is based on the EPS estimation of $3.88, increased twenty-fold. This multiplier is much lower compared to the growth rate of Freedom Holding, while other fast growing companies' multipliers are higher, which also speaks for FRHC stock price rise moving forward. Over the last three years, Freedom Holding had a 16x to 50x expected EPS, on average, 33 times a year, the report says.
Overall, Sidoti & Company expects the stock to rise by 60%, which means it is a good investment asset. Currently, FRHC is trading at $46.86. Click the link to view the detailed report.