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What are MM’s thoughts on Openpay?

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What are MM’s thoughts on Openpay?

Morning team, You've covered the BNPL sector woes and ZIPs fall from grace. Openpay has suffered equally and their recent capital raise is about to close. The capital raise is to see them through to anticipated profitability targeted for June 2023. Any thoughts on where Openpay is at? Do you think their offering is more robust that the others in the sector ? And do you think the risk reward stacks up for the capital raise given placement is at $0.24 and the current price is trading around $0.33. Thanks Steve

Answer

Hi Steve,

Online shopping solutions business Openpay (OPY) has unfortunately been on a rollercoaster ride over the last 2-years with an ugly downside bias inline with much of the BNPL space. On Tuesday alone the stock traded in a 13% trading range illustrating its volatility, in our opinion this is a trading stock at best which looks interesting under 30c and rich above 50c until of course the company starts delivery some positive fundamental news after its capital raise.

In terms of their model, I do think it has more scope for financing of less discretionary items like medical procedures, however management has changed their mind numerous times around where the future growth of the business will come from, and it’s hard to get a handle on what the future will look like.

 

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Openpay (OPY)
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