Symbility Solutions’ Aussie win could be first of many, says Industrial Alliance

Symbility Solutions’ (Symbility Solutionsa Stock Quote, Chart, News: TSXV:SY) first customer win in Australia is getting the thumbs up from Industrial Alliance Securities analyst Blair Abernethy.

This morning, Symbility announced that Auto & General became the first Australian insurance provider to implement Symbility Solutions Inc.’s home insurance claim workflow and estimating system.

“Auto & General has provided insurance to over 1.5 million customers in Australia since 2000 and is seeing rapid growth in its home insurance customer base,” said CEO James Swayze. “The company is constantly investing in smart solutions to improve the customer experience and streamline operations, as it continues to grow market share. We believe this solution provides a sustainable competitive advantage, and we are already seeing major efficiency gains and a much faster turnaround in approval and repairs. Customers love it. Symbility’s technology is paving the way in simplifying and streamlining how property claims are estimated and settled. We are pleased that Auto & General, one of the key players in the property insurance industry in Asia-Pacific, have decided to put their confidence in our products and services through our partnership with CoreLogic.”

Abernethy says this deal serves as proof that the CoreLogic reseller partnership in Asia is working. The analyst expects more deals will soon close in this region and beyond.

“We believe that Symbility continues to have a strong pipeline of opportunities in North America, Europe, and now Asia,” says the analyst. “Conversion of these pilots should help support Symbility’s organic growth profile in 2016 and beyond We remind investors that on the order of 85% of Symbility’s revenue is largely recurring in nature. Also, we note that CoreLogic (~28% ownership of Symbility) has a takeover Standstill Agreement which expires in April 2017. We believe that this situation should help create a “floor” for Symbility’s stock price in coming months.”

In a research update to clients today, Abernethy maintained his “Speculative Buy” rating and one-year price target of $0.55 on Symbility Solutions, implying a return of 35.8 per cent at the time of publication, including dividend.

Abernethy expects Symbility will post Adjusted EBITDA of $100,000 on revenue of $33.6-million in fiscal 2016, numbers he thinks will climb to EBITDA of $1.0-million on revenue of $37.3-million the following year.

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