TD Securities today initiated coverage of Avigilon (TSX:AVO) with a “BUY” rating and street high $39 target.
The new coverage for the Vancouver-based next-gen security provider comes after a round of upgrades following its street-beating Q3 results.
On November 5th, Avigilon announced it had earned $0.23 a share on revenue of $51.1-million, up 101% over the same period a year prior. The street had been expecting earnings of $0.05 on $40.4-million in revenue.
CEO Alexander Fernandes said the quarter was no anomaly.
“Demand for our systems worldwide continues to grow rapidly, which is clearly reflected in our financial performance for the third quarter as we reached a milestone of more than $50 million in quarterly revenue,” he said. “Our strategies are working, and we will continue to invest to expand our global sales team, expand our product portfolio, and increase marketing efforts. Combined with healthy underlying growth in the high-definition surveillance market, these strategic investments position us well to deliver sustainable long-term growth.”
Following Avigilon’s Q3, upgrades came from Cantor Fitzgerald Canada, Raymond James, PI Financial, RBC Capital and CIBC.
Shares of Avigilon closed today up 4.8% to $29.43.