Trending >

VersaPay is PI’s top tech pick for the third quarter

versapay
versapay
VersaPay CEO Craig O’Neill.

Analysts from PI Financial today released their top picks for the third quarter, and technology analyst David Kwan says VersaPay (Stock Quote, Chart, News: TSXV:VPY) is his.

Shares of VersaPay have spiked since the company Thursday announced it had reached an agreement with RBC that will see the chartered bank offer its customers VersaPay ARC under the RBC brand.

“We are delighted to collaborate with RBC to deliver this new offering. With the bank’s breadth and depth of banking and cash management services, and an impressive roster of business customers, RBC is in an ideal position to expand the use of ARC,” said VersaPay CEO Craig O’Neill. “The RBC team has been a pleasure to work with as we integrated our systems and prepared our market launch. We look forward to serving many customers together.”

Kwan says VersaPay is on the cusp of something big.

“We believe VPY is nearing an inflection point, with the business poised to deliver triple digit organic growth in the coming years based on its current direct sales team and existing channel partners (Royal Bank of Canada and Ricoh Canada),” the analyst says. “With $10M in cash, we believe the Company is fully funded as they execute on their high growth strategy and there are several catalysts that should help drive the stock higher in the coming months and quarters.”

Kwan has a “Buy” rating and one-year price target of $2.50 on VersaPay.

The analyst thinks VersaPay will generate Adjusted EBITDA of negative $6.8-million on revenue of $2.5-million in fiscal 2017. He expects those numbers will improve to EBITDA of negative $2.8-million on a topline of $8.9-million the following year.

More Cantech Fintech

  •  
  •  
  •  

About The Author /

Nick Waddell
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.

Comment

Leave a Reply

Your email address will not be published. Required fields are marked *

RELATED POSTS

Access Expert Stock Picks for free

CLOSE

Get Stock Picks From The Pros

Sign up for our newsletter to get timely Canadian stock picks from expert financial analysts.