bullish
Carta Holdings (3688 Jp) - 2Q FOLLOW-UP
SUMMARY
- Following the upward profit forecast revision announced alongside 2Q FY2024/12 earnings, the CARTA HD's forward P/E ratio has settled at just over 20x, in line with peer average.
- Over the past one to two fiscal periods, the Company's share price was underpinned by its proactive shareholder return policy targeting a DOE of 5% while profits were weak, leading to an abnormal P/E ratio.
- However, Sessa Partners believes the Company is entering a phase where further earnings improvement will likely drive a rerate in valuation, as profits have recovered to a reasonable level when assessed on a going concern basis.
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