Savaria is a buy, Paradigm Capital says

Paradigm Capital analyst Razi Hasan initiated coverage of Savaria (Savaria Stock Quote, Chart, News, Analysts, Financials TSX:SIS) on Sept. 21 with a “Buy” rating and a $25.00 target, saying the company is positioned to move into a new phase of growth following the rollout of its “Savaria One” initiative.

Savaria, headquartered in Laval, Que., designs, manufactures, distributes and installs accessibility equipment such as home and commercial elevators, stairlifts, vertical and inclined wheelchair lifts, and dumbwaiters. It also offers a broad line of pressure management products, medical beds, and solutions for safe patient handling.

Hasan said Savaria One allowed management to recalibrate after a challenging operating environment, and while the company will be slightly delayed in reaching its $1-billion revenue target, it achieved its highest-ever Adjusted EBITDA margin of 20.6% in Q2/25.

“We believe realizing Savaria One’s stated objectives are only a matter of time and should warrant a rerate in the company’s share price valuation,” he said.

He expects revenue of $925-million and 20% Adjusted EBITDA margins by the end of 2025, with the groundwork in place for “Savaria 2.0.”

Hasan highlighted Savaria’s defensive attributes, citing its focus on accessibility and patient care products tied to an aging population’s desire to age at home, coupled with healthcare worker shortages.

“We see the defensive attributes of the business as key to providing a long runway for growth,” he said, adding that the company also stands to benefit from a rebound in North American homebuilding.

Hasan pointed to attractive industry dynamics in both the accessibility and patient care markets, each worth around $6-billion and highly fragmented. Savaria, he said, has differentiated itself with a broad product suite and has room to further advance market share through organic growth and acquisitions. Its largest deal was the 2021 purchase of Handicare for about $450-million, and Hasan expects more tuck-in acquisitions ahead.

He also emphasized valuation support, with Savaria trading at 8.9 times forward EV/EBITDA, below its five-year average of 10.4 times and peers despite the company’s stronger and more sustainable margin profile. Applying a 10.0 times multiple to 2026 EBITDA, Hasan set his $25 target.

Hasan forecast Adjusted EBITDA of $180.9-million on $910.2-million in revenue in fiscal 2025, improving to $195.3-million on $960.3-million in 2026.

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