Ahead of its fourth quarter results, Laurentian Bank Securities analyst Nick Agostino is feeling expansive about Kinaxis (Kinaxis Stock Quote, Chart TSX:KXS).
On February 28, after market close, Kinaxis will report its Q4 and fiscal 2018 results. Agostino thinks the company will post Adjusted EBITDA of (all figures USD) of $9.9-million on sales of $40.5-million.
The analyst says recent contract wins reconfirm Kinaxis’s growth profile.
“After a whirlwind tour post Q3 results in Nov. due to a sales miss from delayed contracts compounded by heightened market volatility, KXS shares and the market both appear to have found their footing. Aiding KXS were a series of contract/partnership announcements starting 2019 incl.: 1) contract with Dyson – a UK-based designer/manufacturer of household appliances; 2) KXS customer BristolMyers’ acquisition of Calgene – offers client penetration opportunities; 3)addition of Ernst & Young to KXS’s expanding SI partnership group; and 4)contract with Novartis – 3rd largest global pharmaceutical company.”
In a research update to clients today, Agostino maintained his “Buy” rating and one-year price target of $100.00 on Kinaxis, implying a return of 20.7 per cent at the time of publication.
Agostino thinks KXS will post EBITDA of $43.1-million on revenue of $153.0-million in fiscal 2018. He expects those numbers will improve to EBITDA of $56.3-million on a topline of $185.2-million the following year.
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