The letters PEXA stand for Property Exchange Australia. It is an Electronic Lodgment Network (ELN) and was created to streamline the property settlement process. PEXA’s services are used by most Australian financial institutions as well as conveyancers and property lawyers nationally.
“In our view, Pexa Group (PXA) represents a quality defensive technology play and a unique piece of Australian financial infrastructure,” Raymond said.
“With PXA having increasingly filled out its market domestically, we believe offshore expansion is the largest swing factor for the stock.
“We are optimistic about PXA’s UK expansion, with management having executed well thus far.
“Our valuation (A$15.32) assumes PXA generates ~A$135m of UK revenue by financial year 2027 and reaches ~50% UK property settlement market share by financial year 2031, which we see as conservative versus management’s expectations.
“Trading at a ~17% discount to our valuation (A$15.32), we see upside to PXA’s current share price and initiate coverage with an ADD recommendation,” Raymond concluded.
PEXA Group (PXA)
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.