This analyst just raised his price target on Turnium

Analyst Chris Thompson maintained a “Speculative Buy” rating on Turnium Technology Group (Turnium Technology Group Stock Quote, Chart, News, Analysts, Financials TSXV:TTGI) and raised his target price to $0.35 (from $0.30) in a May 25 eResearch report following what he described as an in-line fiscal Q2/2026 quarter and the first full reporting period reflecting the company’s combined platform strategy.

Thompson increased his target as Turnium continues integrating its acquisitions and shifts toward a broader Technology-as-a-Service model built around recurring revenue and operational leverage.

“FQ2/2026 marks the first quarter reflecting the fully reconstituted portfolio,” Thompson said.

Turnium reported fiscal Q2 revenue of $6.44-million, in line with Thompson’s $6.40-million estimate, representing the first full quarter consolidating Turnium Network Solutions, Claratti and Insentra. Adjusted EBITDA loss was $1.85-million, including roughly $470,000 in one-time M&A and financing costs that are not expected to recur in fiscal Q3.

Management reaffirmed guidance for revenue of $7.0-million to $7.5-million in fiscal Q3 and $8.0-million to $8.5-million in fiscal Q4, implying continued sequential growth toward a $28-million to $32-million annualized revenue run rate. The company has also launched a cost optimization program targeting $1.2-million to $2.4-million in annualized SG&A reductions to improve cash flow.

Thompson said post-quarter developments were encouraging, noting that Insentra secured two six-figure U.S. enterprise contracts structured as multi-phase engagements with recurring revenue potential.

“These wins validate Insentra’s enterprise credentials and channel-led growth model beyond its core Australian market,” Thompson said.

The analyst said the company’s transformation from a single-product SD-WAN vendor into a diversified technology services provider now gives it exposure to multiple growth areas, including managed networks, cybersecurity, UCaaS, maritime connectivity, AI implementation and post-quantum cybersecurity across North America, the U.K. and Asia-Pacific.

Still, Thompson said balance sheet repair remains the key risk. Total debt rose to $19.9-million, although about $7-million relates to vendor take-back loans and earn-outs tied to acquisitions. The company’s previously announced $6.0-million private placement is expected to fund approximately $2.5-million in debt repayment and $3.5-million in working capital.

Thompson said the company’s larger scale should improve profitability metrics materially.

“The $30-million revenue midpoint generates $12.4-million in gross profit, 185% more than FY2025’s $4.35-million, providing materially greater coverage of the fixed cost base and creating a credible path to the $2.1-million to $4.1-million Adjusted EBITDA guidance range,” he said.

Thompson said that Turnium should do $(6.7)-million in Adjusted EBITDA on revenue of $23.5-million in fiscal 2026. He said those numbers will improve to $3.4-million on revenue of $35.5-million in fiscal 2027.

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