RBC raises price target on Evertz Technologies

RBC Dominion Securities analyst Paul Treiber raised his price target on Evertz Technologies (Evertz Technologies Stock Quote, Chart, News, Analysts, Financials TSX:ET) to $15.00 from $13.00 while maintaining a “Sector Perform” rating, as shares continue to re-rate on emerging defence market traction.

Evertz shares have rallied 30% since reporting quarterly results on Dec. 10, which Treiber attributed to investor enthusiasm around the company’s growing exposure to defence customers.

The average Street target is $14.00

“Evertz’s valuation is re-rating upwards,” Treiber said in a March 3 note that was highlighted by the Globe and Mail. “Evertz is trading at 18 times NTM P/E, which is 8% above peers (excluding outlier Haivision) and 32% above Evertz’s 10-year historical average (14 times). We believe Evertz’s valuation re-rating reflects increasing investor visibility to the company’s emerging defence business.”

On Jan. 15, Evertz presented at the 2026 RBC Capital Markets Canadian Aerospace & Defence Symposium. Treiber said the company is benefiting from increased demand for real-time video and high-bandwidth data management within defence agencies, which could provide a long-term organic growth tailwind and help offset softer spending from traditional broadcast customers.

Ahead of third-quarter results expected March 4, Treiber forecasts revenue of $142.0-million, up 4% year-over-year and above the $139.0-million consensus estimate. He expects Adjusted EBITDA of $28.0-million, down 6% year-over-year and in line with consensus, and adjusted EPS of $0.23, slightly below Street estimates.

“Our model calls for Q3 gross margin of 59.0%, which is at the upper end of the company’s targeted 56–60% gross margin range,” Treiber said, noting a growing mix of higher-margin software and services revenue. However, he cautioned that elevated international mix and discounting could pressure margins modestly if trends persist.

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