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Avigilon has 71% upside, Haywood says

Avigilon

AvigilonAhead of the company’s second quarter results, Haywood analyst Pardeep Sangha thinks investor should be looking at Avigilon (Avigilon Stock Quote, Chart, News: TSX:AVO).

On Wednesday, August 9, Avigilon will report its Q2, 2017 results. Sangha thinks the company will post Adjusted EBITDA of $14.3-million on revenue of $100.2-million. He is slightly more optimistic than the street consensus of $13.2-million in EBITDA on a topline of $97.9-million.

The analyst says recent softness in the company’s share price is a chance for investors to get in on a name he thinks is undervalued.

“Avigilon’s share price has decreased 12% over the past 90 days, which we believe is a buying opportunity,” Sangha says. “Avigilon is currently trading at 9.3x EV/EBITDA of our CY17 estimates, which is below the peer group average of 14.6x EV/EBITDA of CY17 consensus estimates.”

In a research update to clients today, Sangha maintained his “Buy” rating and one-year price target of $25.00 on Avigilon, implying a return of 71.1 per cent at the time of publication.

Sangha thinks Avigilon will generate EBITDA of $66.6 per cent on revenue of $417.5-million in fiscal 2017. He expects those numbers will improve to EBITDA of $86.7-million on a topline of $478.0-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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