From Goldman Research today
SDH Grossly Undervalued; Offers Major Upside
At current levels, SDH trades at an inexplicable 4.5x 2020 EPS and 3x our 2021E EPS forecast, despite its history of top-line and bottom-line growth. It is common for shares of foreign-domiciled companies, particularly those with a heavy concentration of business in China to trade at a discount to US stocks. However, the aforementioned price/earnings multiples border on the ludicrous---and presents a rare opportunity for savvy investors, in our view. The Company has traded on NASDAQ since February 2021 and is below its $4.00 offering price, further demonstrating inherent value.
Thus, our $10.80 six-month price target reflects a 10x EPS on multiple on forecasted 2021 EPS, a reasonable discount to its 50% projected growth rate, and a substantial discount to typical small cap US tech stocks that tend to trade 25-30x current year EPS projections.