The story of Avigilon’s (Avigilon Stock Quote, Chart, News: TSX:AVO) expansion is still in its early stages, say Cantor Fitzgerald analysts Tom Liston and Justin Kew.
Recently, Avigilon held its first ever investor day, which featured presentations from company execs as well as panel discussion with clients and integrators. The Cantor Fitzgerald analysts came away impressed with what they saw.
While Avigilon has taken the fast lane towards becoming Canada’s most recent tech company to top $100-million in revenue, Liston and Kew detailed how the company plans to continue to expand towards its stated goal of reaching $500-million in revenue by fiscal 2016.
Avigilon’s Executive Vice President of Marketing and Communications, Keith Marett, outlined the company’s product and marketing strategy. The company, note Liston and Kew, is having success selling to the middle market, but intends to extend its pricing and functionality to appeal to a broader range of clients. The recent release of 1 megapixel and 2 megapixel Micro Dome cameras is a example of this.
An important part of the company’s long-term product strategy revolves around the Avigilon Control Center, which incorporates additional functionality such as security monitoring, access control and fire alarm monitoring. Liston and Kew believe the recent acquisition of Red Cloud was a key development in this area.
Avigilon is also looking to expand geographically. The company will concentrate on new markets such as Asia Pacific, Russia, Latin America, France and Germany.
The Cantor Fitzgerald analysts expect the company’s profitability will strengthen in fiscal 2013 and 2014, even though its main focus will still be the topline. In a research update to clients this morning, Cantor Fitzgerald maintained its BUY recommendation on Avigilon, but raised its target from $19 to $21. The target is based on 25x fiscal 2014 earnings.
Shares of Avigilon closed today up .3% to $17.47.
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