EXO U’s (TSXV:EXO) joining the Cisco Solution Partner Program could rapidly scale the company’s ecosystem, says Mackie Research Capital analyst Nikhil Thadani.
Yesterday, EXO U announced it had joined the Cisco solution partner program as a partner.
“We are pleased to join Cisco’s solution partner program,” said CEO Shan Ahdoot. “We look forward to working with Cisco around the world to help students from all backgrounds gain access to the myriad of educational resources that are now available on-line and via mobile applications through the implementation of EXO U and Cisco’s joint education solution.”
Thadani says the partnership is an important one for EXO U to generate revenue traction and could encourage developers to create apps for EXO U’s ecosystem. Going forward, the analyst expects the company will place emphasis on building out channel partnerships. He says investors are waiting for large recurring revenue contracts, and that progress on that front would be a positive for its stock.
The analyst says the benefit to yesterday announcement is mutual.
“EXO U can help Cisco generate “stickiness” for Cisco’s cloud solutions and help Cisco gain traction in the educational segment in North America. For Example, Cisco could leverage EXO U’s platform to help US schools participate in the E-Rate program, which allocates funds for schools and libraries to obtain and install internet, telecommunications and internal internet access,” he said.
In a research update to clients yesterday, Thadani maintained his “Speculative Buy” rating and $4.00 one-year target on EXO U, implying a return of 213% at the time of publication.