TSXV:TINY keeps “Buy” rating at PI Financial

Following the company’s second quarter results, PI Financial analyst Jason Zandberg is keeping his “Buy” rating on Tiny Ltd (Tiny Stock Quote, Chart, News, Analysts, Financials TSXV:TINY)

On August 24, Tiny reported its Q2, 2023 results. The company posted Adjusted EBITDA of $6.42-million on revenue of $47.5-million, a topline that was up 18 per cent over the same period last year.

On the back of the financials, the analyst explained that he has reduced his revenue expectations slightly.

“We have lowered our near term growth for Tiny’s Creative Platform division and the eCommerce division. We now expect the Creative Platform division to report C$33.2M in 2H revenue (previously C$35.0M) and the eCommerce division to report $26.0M (previously $28.8M). To offset this reduction, our outlook for the Digital Services division has gone up slightly from C$42.0M to C43.9M. Our FY23 revenue estimate is now C$191.5M (previously C$201.4M). Our growth assumptions for FY24 are unchanged, but the estimates have dropped due to the lower FY23 figures in our model. Our FY24 revenue estimate is now C$233.9M (previously C$245.2M)”

In a research update to clients August 25, Zandberg maintained his “Buy” rating and one-year price target of $5.50 on Tiny, implying a return of 37.8 per cent at the time of publication.

Zandberg now expects that the company will post Adjusted EBITDA of $34-million on revenue of $201-million in fiscal 2023. He expects those numbers will improve to EBITDA of $56-million on revenue of $245-million the following year.

About TINY (via company handout)

Tiny is a leading technology holding company with a strategy of acquiring majority stakes in wonderful businesses. Tiny has three core business segments, Digital Services (Beam), E-Commerce platform (WeCommerce), and Creative platform (Dribbble), with other standalone businesses including a private equity investment fund.