The Plenti (ASX:PLT) share price is surging 11% today. Here's why

The fintech lender has exceeded its previous FY22 growth forecasts.

| More on:
a man sits on his sofa loong at his phone and raises a fist to the air in happy celebration.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The Plenti share price is leaping higher today
  • The company's boosted its profit forecast for FY22 
  • Its loan book growth target for FY22 has also been exceeded

The Plenti Group Ltd (ASX: PLT) share price is surging higher today.

Plenti closed yesterday at 91 cents and leapt 16.9% higher to $1.06 at open.

Shares are currently trading for $1.00, up 10.5%, in morning trade.

So why are ASX investors bidding up the Plenti share price today?

Profit forecast upgraded

Investor interest looks to have been piqued this morning after the ASX fintech lender upgraded its profit forecast.

The Plenti share price is charging higher on the report that the company expects to be Cash NPAT profitable for the full year to 31 March 2022. That's the date when Plenti marks its full 2022 financial year (FY22).

The company's previous Cash NPAT forecast for FY22 had been to reach at least $1.0 million in the 6-month period ending 31 March (2H22). It's now boosted that forecast, with expectations to deliver at least $2.2 million in 2H22.

The fintech lender also said it had reached its $1.25 billion loan book growth target for FY22, with the current loan portfolio standing at roughly $1.28 billion.

Commenting on the upgraded financial numbers, Plenti CEO Daniel Foggo said:

We are pleased to be upgrading the forecast for our key profitability metric, as we believe profitability is the critical yardstick against which any business should be measured. Our proprietary technology platform is delivering operating leverage as we scale while continuing to provide exceptional customer experiences, helping us take market share.

Foggo's bullish outlook for the year ahead could also be helping boost the Plenti share price today.

"Having moved to a positive Cash NPAT position, combined with the attractive corporate debt facility announced last week, Plenti is well-placed to continue its growth into the next financial year," he said.

Plenti share price snapshot

With today's intraday gains factored in, the Plenti share price has erased its 1-year losses and is trading right where it was 12 months ago. For some context, the All Ordinaries Index (ASX: XAO) has gained 9.6% over that time.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

A woman is excited as she reads the latest rumour on her phone.
Share Gainers

Why Catalyst Metals, Ora Banda, Spartan Resources, and TechnologyOne shares are rising today

These shares are overcoming the market weakness and pushing higher. But why?

Read more »

Lab worker puts hands in the air and dances around
Healthcare Shares

Guess which ASX healthcare stock just rocketed 46% on major news!

Investors are sending this ASX healthcare stock flying higher on Wednesday. But why?

Read more »

A man sees some good news on his phone and gives a little cheer.
Share Gainers

Why Arafura, Dropsuite, Spartan Resources, and Universal Store shares are pushing higher

These shares are having a strong session on Tuesday. But why?

Read more »

Man on a laptop thinking.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a Garfield-eque start to the trading week this Monday.

Read more »

Woman looks amazed and shocked as she looks at her laptop.
Healthcare Shares

If you invested $5,000 in this ASX pharmaceuticals stock a year ago, you'd have $34,711 now!

Just how lucky have investors been with this stock?

Read more »

A boy stands firm on a rocky cliff holding a rocket in each hand and looking up toward the sky, anticipating flying into space.
Share Gainers

Why these 2 ASX 200 shares are surging amid today's market meltdown

Investors are bidding up these two ASX 200 shares despite the wider market meltdown. But why?

Read more »

A woman with strawberry blonde hair has a huge smile on her face and fist pumps the air having seen good news on her phone.
Share Gainers

Why 29Metals, Immutep, Insignia, and Perenti shares are pushing higher today

These shares are avoiding the market selloff. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Adore Beauty, Domino's, DroneShield, and Universal Store shares are rising today

Not all shares are falling today. Why are these rising?

Read more »