Yesterday, Siyata Mobile pre-announced that it had generated $4.85-million in revenue in the first quarter of 2017, an 80 per cent bump over the same period last year.
“We continue to see very strong demand for all our product lines and are happy to announce another record quarter,” said CEO Marc Seelenfreund. “The recently completed $5.1-million financing puts the company in a very strong position to continue our aggressive sales and product launches into North America.”
Kim says one of the reasons he likes Siyata is its management’s consistent track record of delivering on time or ahead of its goals. The analyst thinks there is till plenty of upside left, despite a strong recent run.
“Despite the share price rising ~100% since initiation, SIM is still inexpensive, at 7.0x 2018e EV/EBITDA versus its peers at 10.3x. With continuous contract awards, growing revenue and EBITDA, and potential for accretive acquisitions, we believe both this discount will change and our estimates have material upside,” he says.
In a research update to clients today, Kim maintained his “Buy” rating, but raised his one-year price target on Siyata Mobile from $0.70 to $0.85, implying a return of 47 per cent at the time of publication.
Kim thinks Siyata will generate EBITDA of $2.3-million on revenue of $22.9-million in fiscal 2017. He expects these numbers will improve to EBITDA of $6.5-million on a topline of $36.3-million the following year.
Disclosure: Siyata Mobile is an annual sponsor of Cantech Letter.