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

30/11/2023

1

Buy

$0.70

105.88%

Shaw and Partners appears to have a new analyst, Larry Gandler, covering Close the Loop, in what is (unusually) described as an initiation of coverage. A Buy rating and 70c target are set, both in line with the prior analyst's recommendation and target.

Close the Loop is described by the broker as "one of Australia’s exciting ESG growth investments" and "a global market leader in printer cartridge recycling", which accounts for 20-25% of group revenue.

Outside of this recycling, management has demonstrated a knack for leveraging its competencies and relationships, notes the analyst. The company has expanded into growth areas such as IT asset disposition (ITAD), cosmetics and battery recycling.

Close the Loop recently acquired US-based ISP Tek (for $100m), a Hewlett Packard authorised distributor and Microsoft-registered refurbisher, which accounts for 40% of group revenue.

FORECAST
Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 2.30 cents.
Shaw and Partners forecasts a full year FY24 dividend of 0.00 cents and EPS of 2.60 cents.