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This Canadian tech stock is a buy, Beacon Securities says

Beacon Securities analyst Donangelo Volpe reiterated a “Buy” rating on Haivision Systems (Haivision Systems Stock Quote, Chart, News, Analysts, Financials TSX:HAI) and raised his price target to $12.25 from $8.00 in a Feb. 6 report, reflecting the introduction of fiscal 2027 estimates and a roll-forward of valuation following record-setting fourth-quarter results.

Volpe said Haivision has started 2026 strongly, with shares up 64% year to date at the time of writing. The higher target is based on an unchanged 12x Adjusted EBITDA multiple, now applied to fiscal 2027.

He introduced fiscal 2027 estimates calling for $168-million in revenue and $31-million in Adjusted EBITDA, representing year-over-year growth of roughly 10% and 50%, respectively. The outlook implies an Adjusted EBITDA margin of about 18%, an improvement of roughly 500 basis points, driven primarily by revenue scale and relatively flat operating expenses.

For fiscal 2026, Volpe made only minor adjustments following management guidance for revenue of at least $150-million, relatively flat operating expenses of about $100-million, and more than 50% growth in Adjusted EBITDA. His updated fiscal 2026 forecast calls for $152.8-million in revenue and $20.7-million in Adjusted EBITDA. First-quarter fiscal 2026 estimates were left unchanged.

Volpe said the renewal of Haivision’s normal course issuer bid allows the company to repurchase up to 1.8 million shares through early February 2027. Under the prior NCIB, Haivision repurchased 977,000 shares at a weighted average price of $4.45, which Volpe views as highly accretive given the current share price. He noted the company ended the year with more than $17-million in cash and minimal borrowings on its $35-million credit facility.

On valuation, Volpe said Haivision trades at roughly 8.4x his fiscal 2027 Adjusted EBITDA estimate, representing a discount of about 30% to peers trading near 12.0x. He said the discount is unwarranted given expectations for double-digit growth, gross margins above 70%, and the potential to exceed 20% EBITDA margins with scale.

Volpe said that Haivision’s exposure to defence and space-related markets supports the case for a re-rating as profitability continues to improve.

 

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Nick Waddell

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.

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