Easton Investments Limited (ASX: EAS) is a diversified financial services company that has been actively acquiring strategic positions in businesses in FY15 to complement the company’s product offering. The distribution arm of the company will be the driver of growth going forward with management also looking to expand the other two divisions through the acquisition of strategic positions in established businesses. Valuation: IIR have initiated coverage of EAS with a target price of $1.46, a 40.4% premium to the share price at 15 December 2015. The company is in a growth phase after refocusing the direction of the company in 2013. Since this time, the company has exited businesses that are not performing and not in line with the new direction of the company and acquired businesses and minority interests to build a financial services distribution business and secure a recurring revenue stream. To reach its objectives, the company is expected to make additional acquisitions. Based on current multiples we view there to be significant upside potential in the company. See research attached.