After speculating late last month that TECSYS (TSX:TCS) could “double or triple” in the next three years, Cantor Fitzgerald Canada analyst Justin Kew has raised his price target on the stock.
In a research update to clients following the company’s third quarter results, Kew maintained his “Buy” rating, but raised his one year target on TECSYS from $9.50 to $11.00, implying a return of 20% at the time of publication.
On February 26, TECSYS reported its Q3, 2014 results. The company earned $467,000 on revenue of $15-million, a topline that was up 26% over the same period last year.
“Demand for our innovative product offering remains strong, which resulted in record quarterly revenue and contract bookings,” said CEO Peter Brereton.”We are strategically investing to strengthen our sales team, increase deployment efficiency and enhance our customer experience. We added another hospital network to our customer base and signed a significant agreement with an existing hospital client to expand into the OR [operating room]. We are confident we are taking the appropriate steps to continue to see strong growth.”
Kew says the sharp increase in bookings and backlog TECSYS demonstrated in the third quarter gives him confidence that the company’s momentum will continue.
“The results this quarter again reflects the strong performance of the health care business and the implementation of the recent integrated delivery networks (IDN) wins,” he said.