Cormark analyst Richard Tse says another major contract win for Symbility Solutions (TSXV:SY) is a technical validation of its technology.
On Tuesday, Symbility announced it will partner with Lloyds Banking Group, one of the largest domestic property insurers in the United Kingdom. Lloyds will integrate Symbility’s claims and mobile scoping tool into its organization.
“The fact that Lloyds Banking Group, one of the key players in the property insurance industry in the U.K., has joined our valued client base proves that Symbility’s cloud-based technology is paving the way in simplifying and streamlining how property claims are estimated and settled,” said Symbility CEO Richard Adair.
Tse says that though the dollar value of the contract was not disclosed, the description of it as “major” suggests to him that it could be worth more than $1-million annually. With a sales cycle that can take up to eighteen months Symbility, he says, is prone to dry spells, news wise. But the company, he notes, has been making inroads in the United States, where it has several irons in the fire.
The company’s 2012 client win of Farmers Insurance, the third largest property and casualty company in the US, was perhaps the first major name to come out of an American pipeline that remains “live and active”.
In a research update to clients following the Lloyds news, Tse reiterated his BUY rating and $.70 target on Symbility solutions. He says the company remains one of his favourite small-cap tech names.
At press time, shares of Symbility Solutions were down 3.1% to $.465.