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Absolute Software has 63% upside, says Industrial Alliance

Absolute Software

absolute-software-400x300 Ahead of its second quarter results, Industrial Alliance Securities analyst Blair Abernethy is feeling good about Absolute Software (TSX:ABT).

On Monday, February 6, Absolute Software is expected to report its Q2, 2017 results. Abernethy expects the company will generate EBITDA of $1.6-million on revenue of $22.5-million, in-line with the street consensus of $1.6-million in EBITDA on a topline of $22.8-million.

Abernethy says he will be watching how the company’s revamped sales force is making progress with new bookings, particularly in non-education verticals such as healthcare, financial services, and government. Overall, the analyst thinks the stock is undervalued.

“Given the recent product improvements and the completion of the sales revamp, we expect an improved sales contract trajectory in F2017 to provide more confidence in the stock as the year progresses,” says the analyst.

Tribe

In a research update to clients today, Abernethy maintained his “Buy” rating and one-year price target of $11.00 on Absolute Software, implying a return of 63.2 per cent at the time of publication.

The analyst expects Absolute will post EBITDA of $6.9-million on revenue of $92.6-million in fiscal 2017. He thinks these numbers will improve to EBITDA of $9.0-million on a topline of $100.2-million the following year.

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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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