The All Ordinaries Index (ASX: XAO) is down 0.5% today, but ASX stock Plenti Group Ltd (ASX: PLT) is heading the other way.
Shares in the technology-led consumer lending and investment company closed yesterday trading at $1.215. As we head into the Tuesday lunch hour, shares are changing hands for $1.23 apiece, up 1.2%.
This sees the Plenti share price up an impressive 83.6% so far in 2025.
And according to the team at Moelis Australia, the ASX stock, which focuses on automotive loans, personal loans, and renewable energy financing, is well placed to keep outperforming in the year ahead.
Here's why.
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ASX stock primed for more growth
The first reason Moelis is bullish on Plenti is the historic and expected growth of its high-quality loan book.
"Plenti has demonstrated impressive annual loan book growth," the broker noted of the ASX stock. "Its loan book closed at $614 million in FY21 and has since grown to over $2.5 billion in FY25."
That represents a compound annual growth rate (CAGR) of around 42%.
Moelis said:
The company is on track to meet an accelerated $3.0bn loan book target by Mar'26, with a medium-term target of $5.0bn by ~Q2FY29. Our estimates broadly reflect this with loan book growth of 13.8% p.a. (ex-NAB) to FY28. Further upside is expected from expanding into adjacent products, developing new verticals, and partnerships with entities like government bodies.
The second reason Moelis said it expects more outperformance from the ASX stock in the year ahead is that Plenti's "diversified and competitive funding platform supports scalable origination."
Moelis noted, "With straight-through processing for personal loans, including instant decisioning and high throughput at low cost, the company is well positioned to efficiently scale originations as loan demand grows."
The third reason the ASX stock could keep charging higher into 2026 is its sector-leading cost discipline, which is accelerating its profitability.
According to Moelis:
With a FY25 cost-to-income ratio of 23.9%, Plenti demonstrates near industry-leading cost management. Continued investment in automation and technology is expected to drive further efficiency gains.
The fourth reason the broker said Plenti shares look well placed to keep on giving is that its technology platform and National Australia Bank Ltd (ASX: NAB) partnership are delivering "strategic optionality."
"Plenti's proprietary technology enables rapid credit decisioning and robust credit assessment, enhancing user experience and operational efficiency," Moelis noted.
The broker added:
The strategic partnership with NAB for auto and renewable energy loans is a major opportunity, offering distribution scale, funding leverage, and balance sheet protection via NAB bearing credit risk.
Should you buy Plenti shares today?
Moelis has a buy rating on the ASX stock with a 12-month target price of $1.53 a share.
That's more than 24% above the Plenti share price at the time of writing.
