Delayed financial results at DataWind (DataWind Stock Quote, Chart, News: TSX:DW) have Haywood Securities analyst Pardeep Sangha placing his rating on the stock under review.
On June 30, DataWind announced that it had recived a default notice from the Ontario Securities Commission regarding a delay in the filing of its audited annual financial statements for the year ended March 31, 2017. The company said its auditor had requested additional time and that the company is working diligently to complete the annual filings. It added that it has applied for a management cease trade order.
Sangha says the development has forced his hand.
“We are unable to properly assess an investment in DataWind without the Company’s annual financial statements,” the analyst says.
In a research update to clients Tuesday, Sangha changed his “Hold” rating and one-year price target of $0.70 to a rating and price target of “Under Review”.
The analyst says light at the end of the tunnel for DataWind may come in the form of a resolution to the filing of its statements, ramping sales back up after Indian currency demonetization, launching a stand-alone Ubisoft browser, renegotiating its debt and expanding to markets outside of India.
Shares of DW on the TSX Wednesday closed down 2.5 per cent to $0.195.