Dealnet Capital Corp's (Dealnet Stock Quote, Chart, News: TSXV:DLS) most recent acquisition has Paradigm Capital analyst Corey Hammill feeling bullish about the company. On December 23, Dealnet announced it had acquired a portfolio of long-term consumer finance rental contracts worth approximately $29-million for $22.5-million and $6.7-million worth of its shares. Hammill thinks this development is another important step in the company's ambitious expansion. "We believe this acquisition puts DLS on track to reach its goal of growing the loan book to $1B by 2020," he says. "A $1B loan book could generate ~$0.20 in annual CFPS. The recent expansion outside of HVAC into other home improvement categories, including windows and water treatment, increases Dealnet’s addressable market by 130%, to 17.5B. Despite Dealnet executing on many growth initiatives over the past 12 months, the company’s market cap has remained largely unchanged. The shares are down 25% YTD, making it the worstperforming non-traditional lender that we track, despite its tremendous growth. We expect cash flow to steadily increase toward our 2018 $0.08 CFPS estimate." In a research update to clients today, Hammill maintained his "Buy" rating and one-year price target of $0.90 on Dealnet Capital Corp, implying a return of 70 per cent at the time of publication, including dividend. Hammill thinks Dealnet will lose two cents a share on revenue of $36.7-million in fiscal 2016. He expects these numbers will improve to earnings of one cent a share on a topline of $53.2-million the following year. Toronto-based Dealnet Capital Corp is a consumer lending company that began with a focus on HVAC (heating, ventilation and air conditioning) and home improvement segments, but has since expanded to other homeowner lending products.