Embattled IMRIS is now a buy, says Paradigm Capital analyst Alan Ridgeway

IMRIS’s VISIUS Surgical Theatre. Shares of IMRIS (TSX:IM) have tumbled since reporting a weak Q4 in early March, but the stock is now attractively priced, says Paradigm Capital analyst Alan Ridgeway.

On March 4th, IMRIS reported its fourth quarter and fiscal year ended 2013 results. The company lost $21.6-million, or $0.42 a share on revenue of $10.0-million. The numbers compared unfavourably to the $6.6-million it lost on a $20.1-million topline in last year’s Q4.

But Ridgeway says he believes IMRIS has very little downside, even though he revised his forecasts for the company lower after its Q4. In a research update to clients this morning, the Paradigm Capital analyst maintained his $2.00 one-year target on IMRIS, but upped his rating from “Hold” to “Buy”. Ridgeway notes that his target now implied a return of 67% at the time of publication.

Ridgeway says there may very well be near-term challenges for IMRIS, but believes they are already priced into the stock. In the long-term, he says there is potential for the company to grow by bringing new products to market and expanding its install base.

Winnipeg-based IMRIS was founded in 1998 in order to commercialize research done by MRI pioneer Dr. Garnette Sutherland at the University of Calgary. The company, which now has more than forty patents either issued or pending, designs and manufactures Magnetic Resonance Imaging Systems for use in operating rooms. The company’s VISIUS Surgical Theatre can incorporate MR imaging, CT imaging and x-ray angiography in a number of configurations.

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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

One thought on “Embattled IMRIS is now a buy, says Paradigm Capital analyst Alan Ridgeway”

hummm says:

May 6, 2014 at 2:54 pm

This company has moved it’s base from Winnipeg to Minneapolis, it’s a very poorly run company and I wouldn’t take stock if it was given to me. A shame since it’s such an innovative, and valuable product.