Sabio Holdings wins huge price target raise at Beacon

The “Redemption Arc” is unfolding for Sabio Holdings (Sabio Holdings Stock Quote, Chart, News, Analysts, Financials TSXV:SBIO), says Beacon Securities analyst Gabriel Leung.

On November 18, Sabio announced its Q3, 2024 results. The company posted Adjusted EBITDA of (US) $2.6-million on revenue of $16.1-million, a topline that was up 82%, year-over-year.

“Our unrelenting focus on efficiency and growth culminated in both record top line growth and profits, which exceeded our preliminary third quarter results announced in October,” CEO Aziz Rahimtoola said. “While we benefited from the election spend across multiple races, our core business was the key, delivering three consecutive quarters of top line double digit growth with gains from our international expansion. We are extremely excited about the overall momentum of our core business in addition to new product launches that are already helping us positively shape the rest of this year and 2025.”

Leung weighed in on the quarter, which he notes came in higher on the revenue side the October pre-announcement.

“Overall, we think this was a solid quarter and represents the culmination of strategic moves initiated by management over the several quarters (both in terms of product direction and cost management),” he wrote.

In a research update to clients November 19, Leung maintained his “Buy” rating and raised his price target on Sabio from $0.70 to $1.50, implying a return of 150% at the time of publication.

The analyst thinks the company will post EBITDA of $3.2-million on revenue of $48.0-million in fiscal 2024. He expects EBITDA of $3.0-million on revenue of $49.2-million in fiscal 2025.

Disclosure: Sabio Holdings is an annual sponsor of Cantech Letter.