Tantalus is a “Top Pick” for this analyst

Haywood analyst Gianluca Tucci raised his target on Tantalus Systems  (Tantalus Systems  Stock Quote, Chart, News, Analysts, Financials TSX:GRID) to C$8.50 from C$8.25 in a May 7 update, maintaining a “Buy” rating and calling the stock his Top Pick.

“GRID is executing on its transition to a high-growth, data-centric model,” Tucci said. “With $40M in liquidity, the company is no longer capital constrained and can aggressively pursue market share.”

Tantalus reported Q1 revenue of US$15.1-million, up 27% year-over-year and ahead of Tucci’s US$13.9-million estimate. Adjusted EBITDA was US$0.8-million, double his US$0.4-million forecast, while gross margin of 52.3% was slightly ahead of expectations.

Tucci said the quarter shows Tantalus moving from a hardware-centric advanced metering infrastructure provider to a higher-value grid analytics and modernization platform. He highlighted TRUSense Gateway traction, with 70 utilities now in trials or deployments and about 40% of those having moved from pilot to active deployment.

“GRID is trading near all-time highs, and we believe the re-rating is warranted,” Tucci said.

Tucci said Tantalus trades at 3.1x consensus 2027 revenue, a modest premium to peers, but he believes that premium is justified by a growth rate more than twice the peer median. He also said the company could be a strategic acquisition target for larger industrial players seeking grid-edge intelligence.

Tucci expects Tantalus to generate Adjusted EBITDA of US$3.5-million on revenue of US$64.9-million in fiscal 2026, improving to US$7.5-million on revenue of US$79.8-million in fiscal 2027.

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