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Cormark Lowers Target on Mediagrif

Mediagrif Interactive

mediagrifMediagrif (TSX:MDF) will continue to struggle with organic growth and is expensive for a company that has become dependent on acquisitions to maintain its topline, says Cormark analyst Richard Tse.

On Tuesday, Mediagrif reported its Q3, 2014 results. The company earned $3.01-million on revenue of $16.4-million. Tse notes that the company’s topline was below his expectation of $17.5-million, and its EBITDA of $6.1-million also missed his $6.8-million target.

Tse says Mediagrif is seeing organic revenue declines in the double digits, but is still maintaining a more than healthy valuation of 20x P/E and 4.4x EV/S. That combination means current investors should look at taking profits, says the Cormark analyst.

In a research update to clients yesterday, Tse maintained his “Reduce” rating and lowered his one-year price target on Mediagrif to $17.00, down a dollar from his previous $18.00 target.

Founded in 1996, Longueuil, Quebec-based Mediagrif offers a range of e-commerce services through B2B platforms such as The Broker Forum, Power Source Online, and Carrus Technologies. The company has grown its revenue from $47.9-million in 2009 to $61.3-million in 2013.

At press time, shares of Mediagrif were up .1% to $18.99.


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About The Author /

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.
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