Cettire Ltd (ASX: CTT) shares caught the eye of investors on Wednesday.
The online luxury products retailer's shares rocketed higher after it delivered a very strong half-year result.
As a reminder, for the six months ended 31 December, the small cap ASX share reported a 90% lift in gross revenue to $460.5 million and a 56% lift in EBITDA to $26.1 million.
This was driven by a combination of higher repeat customers, a 4% lift in average order value, and an 83% increase in active customers to 576,000.
Can this small cap ASX share keep rising?
The team at Bell Potter has been looking over the result and was very impressed. It commented:
Cettire (CTT) reported their 1H24 result and sales revenue of $354m (+89% on pcp) & Adjusted EBITDA of $26m were solid beats to BPe. The 2H24 has commenced strongly with January gross revenue +80% as the company noted a healthy demand environment across its geographies and EBITDA profitability maintained. The cash position of $99m was also a beat to BPe $74m. CTT flagged exploring of capital management initiatives given the strong balance sheet at present.
In light of this, the broker has responded by retaining its buy rating and lifting its price target on the small cap ASX share by 20% to $4.80.
Based on the latest Cettire share price, this implies potential upside of 14.5% for investors over the next 12 months. Bell Potter adds:
We think CTT's ability to outperform their peer group far outweighs others given the ~0.9% market share and further supported by the current consolidation the luxury ecommerce market. We also view CTT's current EBITDA margins ahead of other ecommerce players with minimum risk associated with the drop-ship inventory model. We retain our BUY recommendation.
Cettire's shares are now up 135% over the last 12 months.
