Investors should take a look at ProntoForms (ProntoForms Stock Quote, Chart, News: TSXV:PFM) because the company is an emerging SaaS mobile forms leader with several catalysts on the horizon, says Industrial Alliance Securities analyst Blair Abernethy.
In a research report to clients today, Abernethy initiated coverage of ProntoForms with a “Speculative Buy” rating and a one-year price target of $0.75, implying a return of 167.9 per cent, including dividend.
Abernethy says Kanata-based ProntoForms, whose solutions allow mobile workforces to collect data in the field, is set to both benefit from and lead he adoption of SaaS mobile forms. He notes that Gartner says the Field Service Management software market is today worth (U.S) $1.7-billion in annual sales. For PronotForms, the analyst thinks enterprise end users number more than ten-million in the United States. At (U.S) $10-25 per user he estimates that the market opportunity for the company exceeds a billion dollars.
“We believe that Pronto is well-positioned to expand its product offering in the next few years,” says Abernethy. “The Company’s platform collects and relays (both upstream and downstream) important operational data to other enterprise systems and could potentially add more sophisticated reporting and analytics technologies. We see several potential positive catalysts for Pronto’s stock, including large enterprise wins, quarterly recurring revenue growth acceleration, traction with new partners, and tuck-in product or customer-based acquisitions.
Abernethy thinks ProntoForms will post Adjusted EBITDA of negative $2.9-million on revenue of $12.1-million in fiscal 2016. He expects these numbers will improve to negative EBITDA of $2.5-million on a topline of $15.4-million the following year.