- RAS Technology gets buy rating, target price $1.66
- Chrysos tech disrupts mining, target price $6.32
- RTH, C79 both poised for major growth in their industries
RAS Tech ready to race ahead, says broker
Ord Minnett has initiated coverage on RAS Technology Holdings (ASX:RTH) and given the company a ‘buy’ recommendation, setting a target price of $1.66 per share (versus current price of $0.86).
Founded in 1999, RAS Technology provides data and content services to the racing and wagering industries.
Since listing on the ASX in 2021, the company has been growing rapidly, doubling its revenue and expanding its global reach to markets including Australia, the UK, the US and Asia. It now serves major players like Tabcorp, Entain, and rising star Stake.com.
RTH helps the wagering industry by providing valuable data that make betting easier and more efficient. The company collects and analyses lots of information about races, which betting companies use to set odds and predict outcomes.
RTH also offers content such as race previews and expert tips to keep customers engaged; and helps racing authorities monitor betting activity to ensure everything is fair.
The company has a business model that combines subscription-based SaaS with transactional revenue. As a result, annual recurring revenue (ARR) has surged from $4 million to $19 million in just a few years.
Looking ahead, Ord Minnett points to several key growth drivers.
One of the most exciting is its relationship with Stake.com, a leading online sportsbook. This partnership, which started in 2024, could prove to be RTH’s most lucrative, as the company earns a share of Stake’s gaming revenue from its racing business.
On top of that, RTH’s strong relationships with existing customers like Tabcorp and Entain will continue to fuel growth.
The company is also branching into new partnerships with Playbook Engineering, which should boost its presence in the wagering tech space, according to the broker.
Despite a 15% dip in share price after a recent AGM update, Ord Minnett sees this as a potential buying opportunity.
The broker reckons the sell-off was mainly due to confusion over the company’s strategic shift, and says that RTH’s fundamentals remain solid.
Looking ahead, RTH is expected to see 26% revenue growth in FY25, with a 20% compound annual growth rate (CAGR) over the next three years.
Its ARR is projected to rise from $19 million in FY24 to over $30 million by FY27.
Big upside for Chrysos in gold-mining tech
E&P Research has initiated coverage on Chrysos Corporation (ASX:C79) with a ‘positive’ rating and a price target of $6.32 per share (versus current price of $4.52).
Chrysos, a company formed in 2016, has developed a new way to analyse mineral samples, dubbed PhotonAssay.
This technology, which uses high-energy X-rays to quickly and accurately measure gold in rock samples, is set to replace the traditional fire assay method that has been in use for over 2000 years. It’s supposed to be faster, cleaner and more cost-effective.
The science behind PhotonAssay was developed by CSIRO and commercialised by Chrysos.
It has already gained traction in the gold-mining industry, with machines deployed in major gold mines and labs worldwide, including Barrick-Newmont and other big players.
In fact, PhotonAssay machines are now installed in over 30 locations across four continents.
The company’s business model is based on leasing these machines long-term, with a mix of fixed payments and additional charges based on usage.
Over the life of each machine, Chrysos expects to earn up to $20 million, while the cost of making one is around $4 million.
According to E&P, the technology has the potential to analyse other metals like copper and silver. Right now, however, gold is the main focus.
E&P Research said it’s bullish on Chrysos for several key reasons.
First, the company has positioned itself in a unique market with a disruptive technology that is rapidly gaining traction.
The gold-mining industry is eager for a faster, cheaper and cleaner solution to traditional methods, and PhotonAssay delivers on all fronts.
Secondly, Chrysos is targeting a total addressable market of 610 machines, which could generate a revenue of $1.1 billion globally.
E&P also believes that, as the demand for efficient mining technologies continues to rise, PhotonAssay’s application to a broader range of minerals gives the company significant runway to expand its customer base.
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