This morning the GetSwift Ltd (ASX: GSW) share price continued its strong run and climbed 10% to hit an all-time high of $2.52.
This brought the logistic platform provider's year-to-date return to an incredible 740%.
Is it too late to invest?
Often when a company's shares rise so meteorically it can be easy to dismiss it as a missed opportunity, however I remain confident that there are still significant gains ahead for this fledgling tech company.
As well as signing potentially lucrative deals with Commonwealth Bank of Australia (ASX: CBA), Pizza Hut, Fantastic Furniture, and Red Rooster, the company just announced a game-changing agreement with NA Williams in the United States.
When this deal hits its peak, management estimates that it will generate annual sales in excess of $138 million.
Based on this deal alone and the sector's average price-to-sales ratio of 4.3x, I believe GetSwift could easily command a market capitalisation of $593 million.
If you add in the other deals it has on the table, excluding those that are in the works, then I see the company being worth upwards of $700 million in two to three years.
With approximately 155 million shares outstanding (Note. Corrected from 125 million) and a share price of $2.52, GetSwift has a market cap of $390 million today (Note. Corrected from $315 million). This could potentially mean there is still significant upside potential for its shares over the next few years.
But it isn't without its risks, of course. Should these deals fail to deliver the level of growth that is expected, then its shares could come under significant selling pressure.
Furthermore, while I believe that the company will become highly profitable as its scales, at this stage it is a touch unclear what the costs will be to support the billions of deliveries that will potentially run through its platform each year.
But overall, I believe the risk/reward on offer here is compelling and would suggest investors look to buy in on any profit-taking dips.
