Tantalus (TSX:GRID) has little exposure to tariffs, Paradigm says

The burgeoning tariff war has taken a bite out of Tantalus Systems (Tantalus Systems Stock Quote, Chart, News, Analysts, Financials TSX:GRID), but it shouldn’t.

That’s the opinion of Paradigm Capital analyst Daniel Rosenberg, who says the current pullback is a buying opportunity.

“Tantalus shares have sold off from recent highs of $2.37, down ~23% at the time of this note. This coincides with the implementation of U.S. tariffs on Canada. We think the market reaction is overblown and offers a good entry point for investors,” he wrote in a research report to clients February 3.

The analyst says GRID is a potential takeout target.

“Recall, Tantalus targets municipal and co-op utilities, an underserved market that larger incumbents tend to overlook,” Rosenberg added. “With leading technology, a long-standing customer base and increasing scale, we think GRID could make for an interesting take-out target. If GRID shares continue to be under pressure, an opportunistic strategic purchaser could take advantage of the disconnect.”

Rosenberg says GRID shares are still cheap compared to its peers.

“We think the reasons above make for the recent price movement to be overblown as the company is on the verge of scaling its TRUSense platform. Shares trade at 1.3x 2025e sales (vs. peer median at 3.3x).”