Apivio gets price target raise to $1.10 at Haywood

A strong year-end quarter has Haywood analyst Pardeep Sangha feeling bullish about Apivio (Apivio Stock Quote, Chart, News: TSXV:APV).

Yesterday, Apivio reported its fourth quarter and fiscal 2015 results. In the fourth quarter, the company earned $337,189 on sales of $16.35-million, a 43 per cent topline increase over the same period last year.

“I am pleased with our results for the year ended Dec. 31, 2015,” said CEO Rob Bakshi. “I would like to extend my thanks to our entire team for their hard work and dedication. I look forward to our continued success in 2016 and beyond.”

Sangha says Apivio “easily” beat his expectations for the fourth quarter. The analyst had been expecting revenue of $12.8-million.

In a research update to clients today, Sangha maintained his “Buy” rating on Apivio, but raised his one-year price target on the stock from $1.00 to $1.10, implying a return of 171.6 per cent at the time of publication.

Sangha says there was more than one reason for his target bump.

“We increased our forecasts as a result of the continued strength in the Korean business and growing commitment from NEC for the UT880 Android based smart desktop phone,” he said.

Sangha believes there are several catalysts that could lead Apivio higher, including the potential for a worldwide distribution agreement with NEC, additional purchase orders from NEC America, and potential partnerships with telecom equipment vendors.