Is AmeriTrust Financial Technologies undervalued?

Clarus Securities analyst Noel Atkinson reiterated his “Speculative Buy” rating and $0.30 target on AmeriTrust Financial Technologies (AmeriTrust Financial Technologies In Stock Quote, Chart, News, Analysts, Financials TSXV:AMT) after the company raised proceeds from warrant exercises.

In a recent update, Atkinson noted that AmeriTrust’s balance sheet has improved significantly this year, helped by $35.1-million of gross proceeds from warrant exercises since the start of 2026 and $40-million of convertible debenture and unit offerings completed in January.

The company now has more than $65-million of cash, up from $36-million at the end of June. Atkinson said management and key institutional investors participated in the warrant exercises.

The analyst argued that the stronger cash position should help AmeriTrust as it seeks additional or expanded lease financing facilities.

“Having substantially more cash in treasury should help to move the ball forward on one or more additional lease financing facilities,” Atkinson said.

AmeriTrust said in August it was in discussions with multiple financial institutions for facilities beyond its current Bank of Texas facility, which Atkinson believes has US$20-million of capacity and is offset one-for-one with corporate cash deposits.

Atkinson said accelerating growth in lease-related revenue will require additional lease financing facilities, along with a regular cadence of lease portfolio sales or securitizations to replenish those facilities.

The analyst still expects AmeriTrust to reach positive quarterly Adjusted EBITDA in Q3 2027, supported by a quarterly run rate of about US$60-million of lease originations, US$40-million of lease portfolio sales or securitizations and about 90 remarketed vehicles.

Atkinson said AmeriTrust will need to source and draw down significant funding facilities to achieve his 2027 and 2028 forecasts.

He believes the company remains in launch mode in 2026 and should move into ramp-up mode in 2027, making 2028 the more appropriate valuation year.

His target remains based on 20 times enterprise value to his 2028 Adjusted EBITDA estimate.

“We continue to believe that AMT could have one of the highest revenue growth rates resource stocks on the TSX/TSXV during the 2026e-2028e period,” Atkinson said.

He said there is potential upside to his target if AmeriTrust can accelerate revenue and Adjusted EBITDA growth beyond his forecast, which will depend on its ability to secure more financing facilities and limit credit losses by focusing on prime credit consumers.

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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