Cheap stock? Take a look at this Canadian junior, analyst says

Beacon Securities analyst Donangelo Volpe said Haivision Systems (Haivision Systems Stock Quote, Chart, News, Analysts, Financials TSX:HAI) closed fiscal 2025 with a sharply stronger fourth quarter, delivering record revenue and accelerating profitability, prompting him to raise his target price while reiterating a “Buy” rating.

In a Jan. 15 report, Volpe increased his target to $8.00 from $7.00, citing Q4/25 results that exceeded both Beacon and Street expectations. Haivision reported record quarterly revenue of $40-million, ahead of Beacon’s $35-million estimate and consensus of $36-million. Revenue rose 15% quarter over quarter and 33% year over year, driven by new product introductions and a normalization of U.S. government year-end spending. Gross margin was 73%, in line with expectations.

Haivision Systems is a video technology company headquartered in Montreal, Quebec, Canada (with a major office in Chicago) that builds mission-critical, real-time video streaming, networking, and collaboration solutions used by enterprises, broadcasters, governments, and other organizations worldwide.

At roughly 1.1x FY26 sales and 8.3x FY26 Adjusted EBITDA, Volpe said Haivision continues to trade at an unwarranted discount to peers…

Adjusted EBITDA reached $7-million, versus Beacon’s and consensus estimates of $4-million, representing increases of 100% quarter over quarter and 140% year over year. Adjusted EBITDA margin expanded to 18%, while EPS of $0.11 topped Beacon’s $0.01 forecast and the Street’s $0.04.

For FY25, Haivision generated revenue of $138-million, up 6% year over year, with recurring revenue accounting for 21%. Adjusted EBITDA totalled $13-million, down from $17-million in the prior year, reflecting early-year transition costs.

Volpe noted that the shift in the control room business toward a pure manufacturing model created short-term headwinds, with the revenue trough occurring in January 2025, but said performance improved steadily through the back half of the year. Control room sales excluding third-party components rose 35% year over year, while third-party component sales declined 20%.

Management guided to more than $150-million in FY26 revenue, relatively flat operating expenses of about $100-million, and a greater than 50% increase in adjusted EBITDA. Beacon’s revised FY26 forecast calls for $152.8-million in revenue and $20.4-million in adjusted EBITDA.

Volpe also pointed to balance sheet strength and capital flexibility. Haivision ended FY25 with more than $17-million in cash and only $3-million drawn on its $35-million credit facility.

“We anticipate that the company will continue to prioritize share repurchases through 2026 given the current valuation,” Volpe said, noting approximately $5-million in shares repurchased under the NCIB.

At roughly 1.1x FY26 sales and 8.3x FY26 Adjusted EBITDA, Volpe said Haivision continues to trade at an unwarranted discount to peers, given expectations for double-digit growth, gross margins above 70%, and the potential to exceed 20% Adjusted EBITDA margins with scale.

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