Sensio is a takeover target, says Global Maxfin

Having recently signed extensions with Disney and Universal, Sensio (Sensio Stock Quote, Chart, News: TSXV:SIO) is building value in its 3DGO! platform and has become a “much more valuable takeover target”, says Global Maxfin Capital analyst Ralph Garcea.

This morning, Sensio announced it had extended its content licensing agreement with Universal Pictures Home Entertainment for the distribution of 3-D movies through its 3DGO! video-on-demand service. Titles include animated films as Despicable Me and Dr. Seuss’ The Lorax.

“We are extremely satisfied with both the extension of our U.S. deal and the new Canadian agreement, which will help us expand our movie library and pave the way for our upcoming Canadian expansion,” said CEO Nicholas Routhier. “Universal is a key partner for Sensio, and its content library remains very popular with 3DGO! users. Combined, the extension and the new agreement give us access to more high-quality titles for an extended term, in a bigger territory, and is in line with our objectives. With today’s announcement, we have just taken a big step forward in our development plans for 3DGO!.”

Garcea says there are several reasons investors should own Sensio. He says the company’s royalty revenue should grow from 3DTV manufacturers such as Vizio, it is optimizing its patent portfolio with help from Wi-LAN, and the deals the company has signed with Paramount, Disney and Universal lend “instant credibility to its 3DGO! store.

The analyst believes Sensio is a takeover candidate for companies such as Netflix, Google, Amazon, Yahoo and Hulu.

In a research update to clients this morning, Garcea maintained his “Strong Buy” rating and one-year target price of $0.75 on Sensio, implying a return of 455.6% at the time of publication.