Power Probe Share Price (PWR)

Substantial 87 page initiation report on Research Tree from Shore Capital. 130p initial price target with the prospect of 150-175p on a 2 year view, based on it trading at 12-14x EV/EBITDA. They forecast a 2.2c dividend for 2025 rising to 4.6c for 2026. I suspect there will be quite a bit of demand once this becomes apparent. There are quite literally a handful of AIM stocks that have an easy to understand business model, are growing strongly and paying a strong dividend.

Add in the fact they have 66 patents & 40 trademarks and it's evident that this is a proper business. Looking at the re-rating that Amcomri & Applied Nutrition have enjoyed, it wouldn't surprise me if this is valued at 20x PE by the end of this year.

Great to see this continuing to rise, I suspect it's got a long way to go yet. Really nice to read the below article - if only our media, government or even the LSEG could communicate as possitively it would make a massive difference;

https://www.cityam.com/why-this-californian-company-is-listing-in-london/

"As a high growth company with ambitious plans to expand our business, enter new markets and build on our commercial success to date, Power Probe wanted to select an accessible, capital-rich, and globally respected market that truly understands and nurtures ambitious smaller and mid-sized companies, says Chema Garcia"

For genuine growth companies with innovative products, I think AIM is an ideal place to scale, the key is you have to have quality management & a clear strategy. Concurrent, Filtronic & a handful of others tick that box. Power Probe are making all of the right noises IMO.

Https://investors.powerprobe.com/sites/default/files/2025-12/Power%20Probe%20-%20Admission%20Document%20-%20Pathfinder%20-%2019.11.2025.pdf

From yesterday's RNS;

The Group has grown considerably in recent years, increasing Group revenue from approximately $25.0 million in the 12 months ended 31 December 2022 to approximately $31.3 million in the 12 months ended 31 December 2024, a CAGR of approximately 12%. The Group's underlying EBITDA has increased rapidly, from approximately $4.8 million to approximately $8.3 million over the same period, a CAGR of approximately 31%.

· This strong rate of growth has continued in the first half of 2025, with Group revenue for the period of $20.5 million, gross profit of $8.6 million, and underlying EBITDA of $5.3 million. In particular, the Directors believe that strong sales of recently launched products in the six month period ending 30 June 2025 evidences the return on investment deriving from the Group's focus on innovation.

· The Directors intend to adopt a progressive dividend from Admission as a result of their confidence in the Group's growth profile and cash generative business model. The Company will target a dividend payout ratio of profit after tax in the region of 50% with the first dividend payments expected to be made in 2026."

Great video on their very successful new product; https://www.youtube.com/watch?v=hfqhhKukjFA

I reckon they'll report EPS in the region of 8p for 2025 so a divi on ~4p is possible. If that estimate is close to correct then this looks far too cheap. It goes without saying that profitable, dividend paying AIM growth stocks are rare as hens teeth. As an added bonus this is a simple business to understand & car electrical faults are growing, driving demand for quality diagnostic products.

DYOR but this looks like an early Christmas present to me.

Thank you for your reply.

Words from Moosh on Fundamentals research. Enjoy! http://www.lse.co.uk/blogs/member/moosh-blog/fsxmi3/