Following the company’s most recent quarterly results, Beacon Securities analyst Gabriel Leung has raised his prce target on Cortex Business Solutions (Cortex Stock Quote, Chart: TSXV:CBX)
On Tuesday, after market, Cortex reported its fourth quarter and fiscal 2018 results. In the fourth quarter, the company posted Adjusted EBITDA of $400,000 on revenue of $3.1-million, a topline that was up 5.1 per cent over the same period last year.
“I believe these results are just the beginning of the momentum that we are building at Cortex,” said CEO Joel Leetzow. “Our team has delivered our strongest results yet in F2018 while remaining focused on helping our customers to deliver their own successful results and savings with our ever-expanding service. With our most recent acquisition we are able to work with customers on many new levels by adding new product breadth and supply chain value. I could not be more excited with the trajectory that Cortex is on and look forward to another year of growth and expansion.”
Leung says the quarter came in about where he expected it to. The analyst says he thinks the company’s recent acquisition of Powervision will prove to be a great pickup, adding a strong recurring revenue base with minimal disruption.
“Overall, we think Cortex is in a solid position with a strong core platform, which is now being augmented with accretive acquisitions,” the analyst said.
In a research update to clients today, Leung maintained his “Buy” rating, but raised his one-year price target on Cortex from $6.00 to $6.50, implying a return of 64 per cent at the time of publication.
Leung thinks CBX will generate Adjusted EBITDA of $3.0-million on revenue of $14.7-million in fiscal 2019. He expects those numbers will improve to EBITDA of $3.7-million on a topline of $16.6-million the following year.