You haven’t missed the boat on Sylogist, Echelon says

The stock has been on a tear since December, but there is still money to be made on Sylogist (Sylogist Stock Quote, Chart, News, Analysts, Financials TSX:SYZ), Echelon analyst Amr Ezzat says.

In a research update to clients April 14, Ezzat maintained his “Buy” rating but raised his price target on SYZ from $11.00 to $12.50.

The analyst explained the reasoning behind his increased confidence in SYZ.

“We hosted a series of in-person investor meetings with Sylogist last week,” he wrote. “The discussions during these sessions have further solidified our positive outlook on the Company, reinforcing our conviction in its strategic direction, market positioning, and the effectiveness of its leadership team in executing its growth strategy. This note highlights key themes from the roadshow, namely (1) the sustainability of the Company’s revitalized growth profile, (2) the Company’s evolving go-to-market and delivery model, and (3) the operating leverage going forward. We’re reiterating our Buy rating (Top Pick status), introducing 2026 estimates, and moving our PT to $12.50/shr from $11.00/shr.”

Ezzat thinks SYZ will generate EBITDA of $19.1-million on revenue of $73.1-million in fiscal 2024. He expects those numbers will improve to EBITDA of $25.0-million on a topline of $84.1-million the following year.

The analyst explained why he thinks the company’s revenue growth will not go away.

“The resurgence in growth is not a transient phenomenon but a well-orchestrated outcome of strategic decisions, particularly under the leadership of a revitalized management team and board. As discussed below, significant investments in sales and marketing, as well as research and development, have enabled Sylogist’s products to leapfrog those of its competitors and have laid a solid foundation for continued growth,” he added.