Sidoti & Company Makes Predictive Assessment of the Freedom Finance Shares

The shares may soar by 60%

Sidoti & Company analytical agency initiated coverage of Freedom Holding Corp. (FRHC) with a Moderately Risky rating and $76 price target, which means it may rise by more than 60%.

FRHC shares rose by 178% over the last 12 months, according to analytics. 

«Despite this strong performance, we think there is significant further appreciation potential, as the company leverages the economic development in its core markets and integrates Prime Executions, American broker, which FRHC has acquired recently,» Sidoti & Company said in its report. 

As experts have noted, Prime might be a core element for a new Freedom Holding strategy in the U.S. as well as for the promotion of its services on other markets.

Sidoti & Company views RHC shares as undervalued. Thus, on May 27 the company’s shares were traded on NASDAQ at $47.25 per share.

Revenue growth, margin expansion and operational leverage will serve as catalysts for the shares, analytics said.

«The $76 price target is based on about 20x our F2022 EPS estimate of $3.88; this multiple is significantly below the company’s growth rate and the multiple of stocks of certain other high-growth companies based in FRHC’s markets,» the report authors noted.

Given Sidoti & Company’s comfort with the potential economic and currency risk in the company’s core markets that could impact near-term growth, its prospects support the Moderately Risky rating.

On March 31, Investor’s Business Daily included Freedom Holding Corp. (FRHC) shares in в IBD 50 ETF (FFTY), which tracks companies with high growth potential. The FRHC shares have taken the fifth position on the list.

Freedom Holding Corp. is a financial holding providing a wide range of retail brokering services, investment consulting, equity trading, investment and banking services and underwriting through its subsidiaries of Freedom Finance. The FRHC shares are traded on NASDAQ. As of May 28, the market capitalization of Freedom Holding Corp. is $2.76 billion.

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