Imperus Technologies is hugely undervalued, says Cantor Fitzgerald Canada

Guidance that was above expectations is more proof that Imperus Technologies (Imperus Technologies Stock Quote, Chart, News: TSXV:LAB) is undervalued, says Cantor Fitzgerald Canada analyst Ralph Garcea.

In a press release issued yesterday, Imperus said it expects to report revenue of approximately $8.3-million and adjusted EBITDA of approximately $2.7-million for the three months ended Dec. 31, 2015.

“We are pleased with our fourth quarter results, which show the enduring and growing profitability of our businesses,” said CEO James Lanthier. “We are even more excited about Imperus’s future and the operational progress we have been making in realizing the benefits of bringing Akamon and Diwip together.”

Garcea believes Imperus will have enough cash on hand to service its debt, and says he sees revenue synergies from the company’s acquisitions.

“With the completion of the Akamon acquisition, LAB will focus on synergies between Diwip and Akamon which include applying Akamon’s leading CRM and player management methodologies to the Diwip player base,” he says. “We expect multiple cross selling opportunities to be created through a vastly expanded base of players and game library.

In a research update to clients Thursday, Garcea maintained his “Buy (Speculative)” recommendation and one-year target price of $0.50 on Imperus Technologies, implying a return of 456 per cent at the time of publication.

More Cantech Analysts