YB new stock pitches (Wed, Jun 25)

Weave Communications (WEAV) is a communication and payments SaaS platform for medical offices trading at just 1.8x '26e EV/sales despite a clear trajectory of 15-20% revenue growth and 15%+ FCF margins by 2027. More than 50% of new locations now come from non-dental verticals where competition is limited. Growth catalysts include the recently launched multi-location Enterprise product in 2H24 (targeting >50% of office TAM), a Patterson co-selling partnership improving sales efficiency 3x, payments attach rate driving payments to >20% of revenue (from ~8% currently), and the TrueLark AI receptionist upsell ($35M acquisition) expected to boost NRR from high 90s to ~105%. The company is already FCF breakeven under CEO Brett White, who previously executed a similar payments-driven playbook at Mindbody (sold to Vista at 7.2x EV/sales). Stock weakness stems from conservative guidance, executive turnover, and heavy VC distributions (23% of shares), which appears largely complete. Price targets include $13-15 by November 2025 as multi-location growth materializes, >$16 by mid-2026 as FCF margins become visible, and >$20 by 2027 as the company reaches high-teens FCF margin.

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ABL Group ASA (ABL.OL) presents a compelling margin recovery opportunity, with Q1 EBIT margins improving to 3.8% versus a mid-cycle target of 6.5%, driven by cost optimization and OWC's return to profitability. The company trades at just 4.5x EV/EBITDA, 9x P/E, and offers a projected 15% 2026e FCFF yield with an attractive 9% dividend yield. ABL maintains financial flexibility with no long-term debt and a scalable operating model (29% freelancers), while its $104 million order backlog provides revenue visibility. Recent acquisitions (Proper Marine, Techconsult) are contributing positively to margins, and the company is expanding beyond traditional offshore wind into solar, hydro, and onshore wind (now 19% of OWC's hours billed, up from 11% in 2023). Recent share price weakness contrasts with stronger oil prices and margin progress, making ABL an attractive option for value-focused, yield-driven investors seeking cash flow and margin recovery potential. - link

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Green Brick Partners (GRBK) is a homebuilder that challenges industry norms with its land-heavy approach, achieving 34% gross margins compared to the 25% peer average. Unlike competitors who chase optioned lots or overpay in auctions, GRBK buys and holds raw land, develops it in-house, and leverages Texas-specific public financing to recover over 70% of development costs, recapturing margins that competitors surrender. This vertical integration, low land basis, and cost recovery create a structural advantage no other homebuilder can match. With a 10-year lot supply supporting over 25% unit CAGR and approximately 40% IRR through 2029, GRBK trades at just 7x P/E despite delivering 34% annualized total shareholder return since 2019 and maintaining one of the industry's lowest leverage profiles. The company's disciplined approach to land acquisition becomes increasingly valuable as optioned land costs rise, pressuring competitor margins.

Read the full article here. Read time: 30 min