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The Plenti (ASX:PLT) share price is surging 11% today. Here’s why

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The Plenti Group Ltd (ASX: PLT) share price is surging higher today.

Plenti closed yesterday at 91 cents and leapt 16.9% higher to $1.06 at open.

Shares are currently trading for $1.00, up 10.5%, in morning trade.

So why are ASX investors bidding up the Plenti share price today?

Profit forecast upgraded

Investor interest looks to have been piqued this morning after the ASX fintech lender upgraded its profit forecast.

The Plenti share price is charging higher on the report that the company expects to be Cash NPAT profitable for the full year to 31 March 2022. That’s the date when Plenti marks its full 2022 financial year (FY22).

The company’s previous Cash NPAT forecast for FY22 had been to reach at least $1.0 million in the 6-month period ending 31 March (2H22). It’s now boosted that forecast, with expectations to deliver at least $2.2 million in 2H22.

The fintech lender also said it had reached its $1.25 billion loan book growth target for FY22, with the current loan portfolio standing at roughly $1.28 billion.

Commenting on the upgraded financial numbers, Plenti CEO Daniel Foggo said:

We are pleased to be upgrading the forecast for our key profitability metric, as we believe profitability is the critical yardstick against which any business should be measured. Our proprietary technology platform is delivering operating leverage as we scale while continuing to provide exceptional customer experiences, helping us take market share.

Foggo’s bullish outlook for the year ahead could also be helping boost the Plenti share price today.

“Having moved to a positive Cash NPAT position, combined with the attractive corporate debt facility announced last week, Plenti is well-placed to continue its growth into the next financial year,” he said.

Plenti share price snapshot

With today’s intraday gains factored in, the Plenti share price has erased its 1-year losses and is trading right where it was 12 months ago. For some context, the All Ordinaries Index (ASX: XAO) has gained 9.6% over that time.

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