London, Sep 16, 2020 (Issuewire.com) - Supply@ME Capital (SYME: LN) has developed a cult-like following amongst investors. Its clients swear by its inventory securitization system, and it has weathered the coronavirus-imposed stock market correction by helping prop up other businesses. The firm's growth has been strong amid wider turmoil, bolstered by its healthy balance sheet and loyal client base. Is it time for others to get on board? Several analysts have picked up on SYME's performance during the coronavirus pandemic and have labeled it a must.
Charles Bingham at Schroder Investment Management has named the AIM-listed fintech his top pick with a Buy rating of £2.10.
The company's price soared more than 1000% during August to £0.80, but Daniel Weatherington thinks this is small beans compared to what the company has in store for 2021. A 12-month valuation by Standard Chartered research house has SMYE in the £14.00 bracket, indicating the time to move is now.
The fintech, which recently moved headquarters from Italy to the UK in order to tap into the global financial hub, offers manufacturing and trading companies the chance to use their warehouse inventories to secure capital through a securitization process. The unique aspect is the "true sale" of the inventory to special purpose vehicles, which are incorporated by SYME. Clients have reported using the newly released capital to stock up on more raw materials and goods as they enter the busy period.
The business model has proven sticky and is drawing a wide range of parties who want to leverage their goods for cash during this extended period of market volatility. This has also attracted Barclay's Tom Murray who looked at the company last year and has revised upwards a price of £1.90, more than quadrupling its current trading price.
Of particular interest is SYME's relationship with London's financial center, and its plans for expansion in key global markets, the Middle East and the US. The US and UK have experienced a retreat in lending from established players, and with challenger banks wobbling, the environment is clear for an alternative platform to enter the corporate digital monetization space.
Gregory Murdox at HSBC, UK Branch Trading Desk labeled SYME an obvious immediate Buy, noting the ME is an emerging market with significant opportunity as private equity firms beat a retreat last year following a range of scandals. It is seen as a fintech-friendly jurisdiction, one especially fitting for SYME's unique proposition, and HSBC has put a 2021 top of £17.00.
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Source :Supply@ME Capital
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