AmeriTrust Financial Technologies wins price target raise from this analyst

Clarus Securities analyst Noel Atkinson says AmeriTrust Financial Technologies’ (AmeriTrust Financial Technologies In Stock Quote, Chart, News, Analysts, Financials TSXV:AMT) lease origination growth is accelerating, with Q2 volumes more than tripling from Q1.

In an Aug. 12 update, Atkinson maintained his “Speculative Buy” rating on AmeriTrust and raised his target to $0.30 from $0.20.

Atkinson said the higher target reflects a target multiple of 20 times his 2028 EV/Adjusted EBITDA estimate, up from 15 times previously, because of sustained peer-group valuations.

AmeriTrust generated Q2 lease originations of $4.5-million, up from $1.4-million in Q1 and ahead of Atkinson’s $4.1-million forecast. July originations were 38% higher than June.

The average lease interest rate rose to 9.02%, while the average credit score of 737 remained within the prime to super-prime range.

Revenue of $900,000 matched Atkinson’s forecast. Adjusted EBITDA was negative $2.2-million, better than his forecast for negative $2.5-million and a $500,000 improvement from Q1.

AmeriTrust ended Q2 with just over $36-million of cash. Atkinson said more than $2-million of warrant exercise proceeds contributed to the cash balance, with another $2.2-million received so far in Q3.

The company said it is in discussions with several financial institutions about establishing or expanding credit facilities and other funding arrangements.

Atkinson said he had already expected financing capacity to gradually increase as AmeriTrust’s lease portfolio grew, but the company may now be pursuing a more substantial facility over the next 12 to 18 months.

The analyst left his 2026 and 2027 forecasts largely unchanged, but raised his 2028 estimates to reflect more capital available for lease originations. He continues to expect AmeriTrust to reach positive quarterly Adjusted EBITDA in Q3 fiscal 2027.

Atkinson expects AmeriTrust to generate negative Adjusted EBITDA of $9.3-million on revenue of $4.4-million in fiscal 2026, improving to Adjusted EBITDA of $1.1-million on revenue of $16.5-million in fiscal 2027.

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