Following the release of the company’s third quarter financials, Beacon Securities analyst Gabriel Leung has lowered his one-year price target on Avante Logixx (Avante Logixx Stock Quote, Chart TSXV:XX), though the analyst has maintained his “Buy” rating on the stock.
On Tuesday, Avante Logixx reported its Q3, 2018 results. The company lost $1.02-million on revenue of $8.85-million, a topline that was up 47 per cent over the same period last year.
“I am pleased with the results for the quarter as we have continued to execute on our strategy of building a platform critical to supporting a business with significantly greater scale which we intend to realize through M&A in the near term,” CEO Craig Campbell said. “Our core businesses have delivered against our expectations and, prior to investments at the corporate level, generated positive adjusted EBITDA. We continue to execute against our strategic plan of capturing market share through focused organic growth and strategic M&A which has resulted in significant top-line growth.”
Leung notes that XX beat his $7.9-million expectation on the topline, but that EBITDA of negative $345,000 missed the postive $160,000 mark he had targeted. The analyst thinks the rise in op-ex will soon abate and pave the way for more growth.