Kinaxis is getting its mojo back, says Laurentian Bank Securities

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.