CLOSE THE LOOP LIMITED (CLG)
Share Price Analysis and Chart

04/02/2025

3

Hold, High Risk

$0.50

334.78%

Adding to the uncertainty of a withdrawn private equity takeover proposal by Adamantem Capital, Shaw and Partners notes management at Close the Loop last week downgraded 1H earnings (EBITDA) guidance.

The broker attributes the downgrade to lost sales due to operational challenges at the US computer refurbishment business, ISP Tek, and a delay in the establishment of the low-cost Mexicali plant, resulting in higher operating costs.

The Hold, High Risk rating is maintained. The target falls to 50c from 55c 

FORECAST
Shaw and Partners forecasts a full year FY25 dividend of 0.00 cents and EPS of 3.20 cents.
Shaw and Partners forecasts a full year FY26 dividend of 0.00 cents and EPS of 4.10 cents.

04/09/2024

1

Buy

$0.53

360.87%

Close the Loop posted revenue and earnings that were in line with expectations and guidance. Canaccord Genuity suspects that net debt, which increased by $16m in the June half year, was the main driver of the drop in the share price.

The broker believes the business should be able to convert closer to 90% of EBITDA into cash noting the shares continue to trade at very low multiples.

Buy rating is retained as the current valuation appears to compensate investors for the risk in the business. Target is reduced to $0.53 from $0.65.

FORECAST
Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 5.10 cents.
Canaccord Genuity forecasts a full year FY26 EPS of 6.10 cents.