Solium Capital is a buy, says Canaccord Genuity

After attending Solium Capital’s (Solium Capital Stock Quote, Chart, News: TSX:SUM) user conference in San Diego, Canaccord Genuity analyst Robert Young says the company’s growing customer base is happy.

From May 23 to May 26, Solium Capital hosted Synergy, its annual user conference, at the Coronado Hilton in San Diego. Young, who attended the entire event, noted that there was no formal investor presentation, but says he was able to glean a lot about Solium’s business by talking to customers.

“Customers were generally of the view that Solium has a technology edge and offers a unique global platform,” says Young. “Very similar to last year, the customers we spoke with are generally happy and are looking for ways to use Solium more. Almost all conversations highlighted the advantage of the share works platform and its seamless global coverage. Grumbles were mostly around clunky UI and slow inclusion of special requests. We heard no complaints on subscription pricing and minimal concern around transaction pricing.”

In a research update to clients today, Young maintained his “Buy” rating and one-year price target of $11.00 on Solium Capital, implying a return of 10 per cent at the time of publication.

Young thinks Solium Capital will post EBITDA of $8.9-million on revenue of $87.4-million in fiscal 2017. He expects these numbers will improve to EBITDA of $15.8-million on a topline of $106.5-million the following year.

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