Absolute Software’s (Absolute Software Stock Quote, Chart, News: TSX:ABT) new sales strategy is delivering, says PI Financial analyst Pardeep Sangha.
This morning, Absolute Software reported its Q2, 2015 results. The company earned (U.S.) $2.24-million on sales contracts of $25.2-million, up 13% from the $22.2-million the company reported in the same period last year.
“We will continue to focus on strengthening our position in education, while investing for accelerated growth in the corporate and health care market segments,” said CEO Geoff Haydon. “We will increase the awareness of Absolute within new customer segments and different geographies. Finally, we will continue to optimize direct sales and partner productivity in key geographic and vertical markets, with the clear objective of delivering a superior customer experience and sustainable long-term growth.”
Sangha says changes Absolute has are working. He notes that the company has shifted its North American sales team to larger cities, added an inside sales team and new OEM partnerships. He says the company is ramping up in international markets, but investors should expect that revenue to be lumpy going forward.
In a research update to clients today, Sangha maintained his “Buy” rating on Absolute Software, but raised his one-year target price on the stock from from $9.50 to $10.50.
“We believe increased sales effectiveness and focus by the new CEO should lead to improved results and higher share price,” said Sangha, adding: “…early indications of the new sales strategy look positive”.
Shares of Absolute Software closed today up 1.6% to $8.74.