If the business executes there should definitely be more to...

If the business executes there should definitely be more to come.

If they hit their targets over the next 2 years (lower end is 10% revenue growth pa for 2 yrs) at the same margins, there should be a multiple expansion to at least 15-20, possible more. These give price targets starting from 1.40 to upwards of 3 if the upper end of guidance is met.

The upside is:
- higher end of revenue guidance
- improving margins with scale
- further acquisitions (there should be excess cash if the business executes)
- further multiple expansion (could eg be valued at 25x forward PE instead of 10x backward).

I bought on results as I felt that I had seen evidence of this execution after previous failures. At these prices there is extremely limited downside (current valuations essentially assume growth cannot be maintained).