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Pivot Technology is undervalued, says Cantor Fitzgerald Canada

Pivot Technology Solutions

Pivot Technology SolutionsA business update at the company’s AGM yesterday has Cantor Fitzgerald Canada analyst Ralph Garcea feeling bullish about Pivot Technology (Pivot Technologies Stock Quote, Chart, News: TSXV:PTG).

Yesterday, at Pivot’s AGM, the company elected seven directors, approve a stock option plan, and announced a four-for-one share consolidation.

Garcea says the level of disclosure at the meeting was very detailed and thinks the company will be much more “market friendly” going forward. “PTG’s 1-for-4 share consolidation was approved, all nominated Directors were elected to the Board, and the proposed stock option plan was passed, ” notes the analyst. “More importantly, a business update was provided and management highlighted the growth prospects of the business. We remain confident in management’s ability to deliver under CEO Kevin Shank’s leadership – with a target of growing managed services to 30% of revenue over the next three years (our estimate). We estimate that every 1% increase in services revenues (as a % of total revs) adds ~$1M in EBITDA.”

In a research update to clients today, Garcea maintained his “Buy” rating and one-year price target $1.50 on Pivot Technology Group, implying a return of 285 per cent at the time of publication.

About The Author /

Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.
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