AIDX
Trending >

Is Blackline Safety a buy? (January, 2025)

BLN stock

Ahead of the company’s fourth quarter results, Ventum Capital Markets analyst Amr Ezzat has maintained his “Buy” rating on Blackline Safety (Blackline Safety Stock Quote, Chart, News, Analysts, Financials TSX:BLN).

On January 16, before the market open, BLN will post its Q4, 2024 results.

The analyst says he is a little less optimistic than the street, although he notes that seasonally, the is typically the company’s best quarter.

“We are going into the quarter a touch below the Street on Sales and Adjusted EBITDA,” Ezzat wrote. “Specifically, we are calling for sales/Adjusted EBITDA of $37.4M/$0.9M (24.4% YoY growth, 2.4% margin) versus the Street at $38.1M/$1.1M (26.8% YoY growth, 2.9% margin). Historically, FQ4 has been the Company’s strongest quarter. We anticipate robust hardware revenue growth as well as continued service revenue momentum to drive another positive Adjusted EBITDA quarter as the Company exits F2024. That said, the sequential growth trajectory from FQ3 to FQ4 is likely to moderate relative to prior years.”

In a January 10 research report, Ezzat maintained his “Buy” rating and price target of $7.00 on BLN, implying a return of 2.6% at the time of publication.

The analyst thinks the company will post Adjusted EBITDA of negative $3.6-million on revenue of $129.0-million in fiscal 2024. He expects those numbers will improve to Adjusted EBITDA of $7.5-million on a topline of $158.8-million in fiscal 2025.

“Following a stellar +48.2% performance since we re-initiated coverage in early September, the stock is now trading close to our target price. We plan to recalibrate our forecasts and valuation after the upcoming quarterly results. Over the long term, we see potential for further upside beyond our 12-month target as the Company transitions to a positive free cash flow generator,” Ezzat added.

About The Author /

Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.
insta twitter facebook

Comment