Trending >

Sandvine is finally hitting its stride, says Cormark

Sandvine

 

Sandvine
Cormark analyst Richard Tse says the obvious question about Sandvine at this point is whether or not its recent growth is sustainable. He says he believes it is because the company’s intellectual property has proven difficult to replicate.

Cormark analyst Richard Tse says that, following a year in which it struggled though partner changes and product revisions, Sandvine (Sandvine Stock Quote, Chart, News: TSX:SVC) is finally hitting its stride.

Yesterday, the Waterloo-based provider of network policy control solutions reported its Q1, 2013 numbers. The company earned $1.7-million on revenue of $25-million.

Tse says that with content offerings growing, carriers and operators will look, increasingly, to technologies that Sandvine offers, such as Deep Packet Inspection and Service Creation. He says the “retuned” company has built a portfolio of offering beyond its traditional traffic management offerings and has an increasing global reach because it has worked hard to expand its partner base. In a research update to clients this morning, Tse maintained his BUY rating on Sandvine, but raised his target to $2.75. His previous target was $2.25.

Tse says the obvious question about Sandvine at this point is whether or not its recent growth is sustainable. The Cormark analyst says he believes it is because the company’s intellectual property has proven difficult to replicate. He says this is reflected in the company’s acquisition expanding partner channel, which includes the recent additions of IBM and Juniper.

Sandvine’s revenue dipped to $87.93-million last year, but Tse believes it will begin to climb again, to $111.9-million in fiscal 2013, and to $147.3-million the following year.

More Cantech Analysts

  •  
  •  
  •  

About The Author /

Nick Waddell
Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.

Comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Access Expert Stock Picks for free

CLOSE

Get Stock Picks From The Pros

Sign up for our newsletter to get timely Canadian stock picks from expert financial analysts.