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Tecsys’s leadership role in healthcare validated by new contracts, says PI

tecsys Three new contracts validate Tecsys’s (TSX:TCS) leadership role in providing supply chain solutions in the healthcare market, says PI analyst Pardeep Sangha.

Yesterday, Tecsys announced it had added three “major” health systems as customers. CFO Berty Ho-Wo-Cheong commented on the development.

“The rapid rate of change health care organizations are facing has driven the adoption rate of our health system solutions to a record high,” he said. “The three significant wins we announced today have all come since the beginning of fiscal 2015 as we continue to expand our penetration of the health systems’ market. The growing acceptance of our solutions reflects our success in helping organizations take control of their supply chain from source to patient, in the process saving their organizations millions of dollars.”

Sangha says these contracts are proof that Tecsys has the leadership role in providing supply chain solutions in the healthcare market. He notes that all three deals were scrutinized through a meticulous RFP process, with Tecsys coming out on top. He thinks the company is gaining momentum in healthcare, as evidenced by its growing backlog.

The analyst thinks Tecsys will generate EBITDA of $6.0-million on revenue of $56.8-million in fiscal 2015, and EBITDA of $8.4-million on a topline of $64.6-million the following year.

In a research update to clients today, Sangha maintained his “Buy” rating on Tecsys, but raised his one-year target on the stock from $9.75 to $10.00.

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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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