Pivot Technology is undervalued, says Cantor Fitzgerald Canada

A 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.