Step One (STP) is an Australian that listed on the ASX on 1 November 2021. Within two days its share price went up 80%. The company is an online retailer of men’s and women’s underwear and maintains its commitment to crafting clothing that’s both ethical and sustainable.
“Step One’s (STP) sales momentum and operating margins have improved materially in recent periods. Inventories have started to track down and losses appear to have
been all but eliminated in the US,” Raymond said.
“STP is well backed by tangible assets, which we don’t see as overvalued.
We believe the quality of the product and brand is coming to the fore, which will allow for positive and profitable growth to be sustained.
“We rate Step One as an ADD, with an enterprise value (EV)/ earnings before interest and taxes (EBIT) based target price of $2.15,” Raymond said.
Step One (STP)
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