The Artisanal Spirits Company Plc's (AIM:ART) inventory base is not being fully recognised by the market.
That, at least, is the conclusion of Liberum, the company's corporate broker, which has a 95p price target for the shares - more than double the stock's current valuation.
Liberum admits that 2023 was a difficult year, resulting in lower-than-anticipated growth at the top and bottom lines.
However, it points to the valuation of Artisanal's asset base, which includes 17,000 barrels of malt whisky. That stock is carried on the balance sheet at £15m, or just under half the company's market capitalisation.
However, a professional independent group called Ferovinum puts its worth at around 4.8 times more than the carrying value.
Liberum told investors the market appears to be improving as 2024 unfolds.