Qualitas Ltd (ASX: QAL) shares have been on form over the past 12 months.
During this time, the ASX All Ords stock has risen by a sizeable 25%.
Investors have been buying the alternative real estate investment manager's shares after it delivered growth in all the right places.
This includes increasing its committed funds under management to approximately $8.9 billion at the last count.
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What is this ASX All Ords stock?
Qualitas describes itself as a company providing global capital with access to attractive risk adjusted investments in real estate private credit and real estate private equity through a range of investment solutions for institutional, wholesale and retail clients.
It aims to offer flexible capital solutions for its partners, creating long term value for shareholders, and the communities in which it operates.
In FY 2024, the company reported a 25% increase in normalised EBITDA to $41.9 million and normalised net profit before tax growth of 26% to $39 million.
But if you thought this growth was over, think again. Management is guiding to net profit before tax of between $49 million and $55 million in FY 2025. This represents an increase of 26% to 41%, respectively, on FY 2024's numbers.
'Plenty more upside'
Analysts at Blackwattle Investment Partners have been impressed with the company's performance and believe there's more to come.
Commenting on the ASX All Ords stock in its latest fund update, the investment company said:
Qualitas is a founder-led alternative real estate investment manager focused on private credit and equity across the Commercial Real Estate sector and is the only pureplay in the Australian market. Its share price rose 17% in October as the outlook for residential lending improved with the Victorian government announcing a one-year stamp duty exemption for off-the-plan purchases and 50 higher density "activity centres" around Melbourne's high frequency train lines, in addition to green shoots of apartment pricing escalation which supports project feasibility.
Despite the recent share price run, we still see plenty more upside as QAL capitalises on the structural tailwinds of ongoing penetration of private credit and the housing undersupply in Australia.
The team at Morgans is likely to agree with this view.
A recent note reveals that its analysts have an add rating and $3.20 price target on the ASX All Ords stock. Based on its current share price of $2.67, this implies potential upside of approximately 20% for investors over the next 12 months.
