This analyst nearly doubled his price target on Data Communications Management

Clarus Securities analyst Noel Atkinson says Data Communications Management’s (Data Communications Management Stock Quote, Chart, News, Analysts, Financials TSX:DCM) acquisition of Octacom strengthens its move into intelligent document processing and could add momentum to the stock.

In a July 9 update, Atkinson maintained his “Buy” rating on Data Communications Management and raised his target to $6.00, nearly double his prior $3.25 target.

Atkinson raised his valuation multiple to eight times 2027 Adjusted EBITDA from six times, citing a stronger organic revenue growth outlook for 2027 and beyond.

Data Communications Management, Canada’s largest corporate materials printing services company, acquired Octacom for $54-million, including 6.4 million shares worth $10.8-million and $43.2-million in cash.

Atkinson said the deal “creates a new cornerstone of DCM’s digital services platform.”

Octacom adds intelligent document processing, or IDP, which captures, classifies, extracts and validates unstructured data from paper and digital files for storage, workflow and AI uses.

“IDP is highly complementary to DCM’s printing business, and the sector is growing rapidly as companies and governments seek to digitize trillions of stored documents and also integrate new paper and digital files into their electronic workflows,” Atkinson said.

DCM expanded its bank credit facility to $160-million to fund the acquisition, repay about $40-million of higher-cost Fiera loans and support working capital for growth.

Octacom generated $23-million of trailing-12-month revenue to May 2026, up about 30% year-over-year, with an EBITDA margin above DCM’s corporate average. Its clients include Air Canada, Hamilton Health Sciences and Ontario Power Generation.

Atkinson said Octacom gives DCM a stronger software and infrastructure platform, enterprise customers in Canada and the U.S., and experience in a global IDP market growing at more than 30% annually.

He expects IDP to become DCM’s primary organic growth engine, driving mid-to-high single-digit organic revenue growth in 2027 and beyond.

Atkinson expects DATA Communications Management to generate Adjusted EBITDA of $62.8-million on revenue of $458.9-million in fiscal 2026, improving to Adjusted EBITDA of $78.9-million on revenue of $494.7-million in fiscal 2027.

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