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

11/07/2024

1

Buy, High Risk

$0.70

129.51%

Close the Loop's relationship with Hewlett-Packard is likely to expand beyond its current 3-year agreement covering return-to-store IT equipment, predicts Shaw and Partners.

The broker notes management recently presented to investors its IT refurbishment business. The business is centred in North America but has operations in Europe and Australia.

The analysts highlight governments across the world are increasingly regulating e-waste away from landfill, and processing end-of-
life IT equipment is an enormous global growth industry for Close the Loop.

No changes have been made to the broker's earnings estimates. The Buy rating and target price of 70c are retained. High Risk.

FORECAST
Shaw and Partners forecasts a full year FY24 dividend of 0.00 cents and EPS of 5.10 cents.
Shaw and Partners forecasts a full year FY25 dividend of 0.00 cents and EPS of 5.60 cents.

13/06/2024

1

Initiation of coverage with Buy

$0.65

113.11%

Canaccord Genuity initiates coverage of Close the Loop with a Buy rating and 65c target price, which the broker considers to be conservative.

Close the Loop is leveraged to the circularity megatrend and is involved in sustainable packaging, printer cartridge recycling and the repurposing of personal and enterprise electronic equipment for OEMs (the broker believes the latter opportunity to be the most compelling).

The broker observes the company, which is a circularity pioneer, enjoys relationships with 17 leading operating equipment manufacturers, most of which either have or will be establishing circularity divisions/enterprises. 

The company is profitable across the P&L and boasts good free cash flow, which Canaccord Genuity expects will continue over FY24 to FY26, during which period it expects 17% EPS growth.

Canaccord Genuity observes the company is free cash flow positive and boasts a cheap valuation.

FORECAST
Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 4.30 cents.
Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 5.30 cents.