Symbility Solutions (Symbility Solutions Stock Quote, Chart, News: TSXV:SY) is a junior tech that investors should keep an eye on, says Industrial Alliance Securities analyst Blair Abernethy.
In a research report to clients today, Abernethy initiated coverage of Symbility Solutions with a “Speculative Buy” rating and a one-year price target of $0.55, implying a return of 44.7 per cent at the time of publication, including dividend.
Abernethy says Symbility is SaaS-based insurance vendor that has a significant growth opportunity.
“We believe that Symbility has a significant market opportunity to supplant legacy desktop claims processing software in the P&C insurance industry, in particular products from vendors such as Xactware (a subsidiary of Verisk [VRSK-Q, Not Rated]), as large insurance customers look to streamline and improve their claims processing operations,” says the analyst. “The US P&C industry typically processes 8-9M property damage claims annually, which we believe could represent a market opportunity in excess of US$250M annually for Symbility’s core claims processing solution.”
Abernethy says he expects Symbility will grow its revenue by 25.3 per cent in 2016 to $33.2-million, and by more than 11 per cent the following year, to $36.9-million. He says that even though the company is investing heavily in product and market development he thinks it will come close to break even in EBITDA, near term.
We Hate Paywalls Too!
At Cantech Letter we prize independent journalism like you do. And we don't care for paywalls and popups and all that noise That's why we need your support. If you value getting your daily information from the experts, won't you help us? No donation is too small.