Pineapple Financial (NYSE: PAPL) Is A Perfect Play As Global Interest Rates Decline!

Pineapple Financial (NYSE: PAPL) Is A Perfect Play As Global Interest Rates Decline  FDR Member, Rate cuts are here! And, Members, we believe it could inspire a rotation into company stocks that have been pressured in recent quarters. That list should include Pineapple Financial, Inc. (NYSE American: PAPL). Like others in its sector, PAPL stock took a hit this year, trading lower by 52% at its current $0.81 price. That wasn't surprising as higher rates, rising inflation, and tight consumer pockets strained companies in the mortgage space. Finally, the much-anticipated breath of relief, lower interest rates, has been taken.  Yesterday, the Fed announced a 25 basis point reduction in its funds rate. The news fueled PAPL to a roughly 3% gain. But here's the better news- and why we believe PAPL can be poised for a move higher. The Fed hinted at additional rate cuts being forthcoming. We believe that bias will cause analysts to rework valuation models to more appropriately value companies in the mortgage space. Essential to our thesis- PAPL could be on their list. If so, an update could be a driver for significantly higher prices. Why?  Because PAPL stock has already earned a BUY rating and price target of $5.50 from an EF Hutton analyst. That opinion was published in May while interest rates were standing firm. However, the bullish case for PAPL isn't based entirely on an environment of lower interest rates. The analyst at EF Hutton bases his valuation on a 2026 view rather than next year, saying 2026 better captures a full year's worth of Pineapple's expansion into the U.S. market and the launch of its insurance offerings in Canada. They see the company as well positioned to take market share from conventional competition because of its more efficient automated suite of solutions. Thus, early to this investment proposition could benefit investors with a medium to long-term investment horizon. That's not to suggest the company can't do well in the short term.  It can, noting that high tide raises all ships. In other words, PAPL investment is a timely consideration that serves all investor appetites. Moreover, this company isn't the typical sector player. Despite market challenges, PAPL has a track record of growth from a scalable platform that poises it for expansion. Success is inherent to ushering in a new era of efficiency and innovation, which puts them at the forefront of a transformative period in the Canadian mortgage market.  Differences are advantages...  Its unique blend of cutting-edge technology and data-driven insights is redefining how mortgage brokers operate. Keep in mind, too, that yesterday's rate cut in the U.S. isn't the only inspiration for higher share prices. The Bank of Canada recently lowered its benchmark interest rate to 4.25%. This global sentiment toward lowering rates could be a relentless near-term value driver for PAPL, and it's hard for anyone to argue against the company being perfectly positioned to capture market share and expand its influence in the mortgage sector.  They are already in the right place at the right time. The Canadian housing market is on the verge of significant expansion. In 2023, the country witnessed over 240,000 housing completions, with an additional 260,000 units expected by the end of 2024. This increased supply of homes will inevitably drive demand for mortgage financing, providing Pineapple with significant revenue-generating opportunities. That's not all. With 1.2 million mortgages, or roughly 20% of the total Canadian mortgage market, set to renew in the coming year, the company is also positioned to capitalize on an incredible $440 billion in potential mortgage volume. This combination of new housing supply and mortgage renewals presents a rare opportunity for growth for companies positioned to handle it. Pineapple Financial is. And differently.  The PineappleONE Express...  Pineapple's advanced platform, PineappleONE, launched in August, leverages real-time data analytics to offer personalized mortgage solutions at scale. As homebuyers and those renewing their mortgages seek out the best financial terms in a lower-rate environment, PineappleONE can quickly identify, target, and engage these consumers, giving them a significant competitive edge. Notably, the platform is not just a tool for customer acquisition but also designed to maximize retention—key to Pineapple's long-term growth strategy.  It's current strategy is also working well. In the third quarter of fiscal 2024, PineappleONE helped brokers achieve a 32% reduction in deal processing time. This operational efficiency drove a 22.72% increase in mortgage loan volumes, with $377.64 million in residential mortgages closed in the period, up from $307.73 million the previous year. This volume increase resulted in a 20.43% boost in revenue, with Q3 fiscal 2024 revenues reaching $736,448, a sharp increase from $603,231 in the same quarter of 2023.  Moving forward, Pineapple's performance could be even better. Many believe that the U.S. Fed's and Bank of Canada's recent rate cuts could be the beginning of a consistent trend. If so, PAPL is ideally positioned to capitalize on easing monetary policy, which will likely enhance mortgage affordability for first-time homebuyers and existing homeowners looking to refinance. Still, the most significant value driver may not be those mentioned.  Here's the driver to focus on...  As Canada's mortgage market braces for a wave of renewals, with 45% of existing mortgages set to renew within the next 18 months, PineappleONE's enhanced capabilities offer the perfect mix of deliverables from its ability to automate complex mortgage calculations that enable brokers to deliver precise, side-by-side financial scenarios. This facilitates clients in making informed decisions about refinancing and renewal strategies, ultimately improving client satisfaction and retention rates. The result is a win-win-win scenario in a customer-centric mortgage process that benefits brokers, consumers, and Pineapple's bottom line.  And with a platform focused on maximizing broker efficiency, customer retention, and technology-driven solutions, growth beyond the bullish 579% increase in the PAPL stock price forecast by EF Hutton may indeed be in play. In other words, Members, this Pineapple looks ripe for the taking. To Your Trading Success, Michael Reece Editor, Financial Driven Research Sources: [( [( [( [( [( [( [( [( [( © 2024 Financial Driven Research, All Rights Reserved. Financial Driven Research (“FDR” or “Company”) is a financial publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or inves∙tment for any specific individual. FDR full disclosure is to be read and fully understood before using FDR website or joining FDR email or sms list. By viewing FDR website and/or reading FDR email or sms list you are agreeing to FDR full disclosure This publication may contain information regarding inves∙tment ideas and third-party ratings regarding specific securities. We hold n∙o inves∙tment licenses and are thus neither licensed nor qualified to provide inves∙tment adv∙ice. FDR nor its principals are not FINRA-registered broker-dealers or inves∙tment advisers. The content of this email should not be taken as advice, an endorsement, or a recommendation from FDR to buy or sell any security. Always be extremely careful and consult a licensed inves∙tment professional before making any inves∙tment decision as inves∙ting in securities carries a high degree of risk; you may likely lose some or all of the inves∙tment. This communication is a sponsored advertisement. FDR and/or its subsidiaries and/or affiliates have not been compensated to disseminate this communication. Please note we do not hold positions in stocks we profile. We do not trade in any of our sponsored advertisements, or non-sponsored profiles. We do not accept stock as a form of payment for our sponsored advertisements. Please review the full disc∙laimer at [Disc]( and Disclosure Policy]( for important information regarding this sponsored advertisement. © 2023 FDR. All rights reserved., 1014 W 36th St, Baltimore, MD 21211, United States You may [unsubscribe]( or [change your contact details]( at any time. Powered by:[GetResponse](