Lumine Group: this analyst just raised his price target

Desjardins Securities says investors may look past Lumine Group’s (Lumine Group Stock Quote, Chart, News, Analysts, Financials TSXV:LMN) mixed Q2 results after a sharp increase in M&A activity since quarter-end.

As reported by the Globe and Mail, in an Aug. 5 update, analyst Jerome Dubreuil maintained his “Buy” rating on Lumine and raised his target to $38.00 from $36.00. The average target is $37.00

Lumine reported Q2 revenue of US$235.1-million, up 28% year-over-year and slightly ahead of Dubreuil’s US$233-million estimate and consensus at US$233-million. Organic growth was 1% after adjusting for foreign exchange.

Adjusted EBITDA was US$78-million, up 19%, but below Dubreuil’s US$79-million forecast and consensus at US$81-million.

Dubreuil said the quarter was mixed, but investors may focus more on Lumine’s record capital deployment. The company has deployed US$513-million year-to-date, including the US$275-million Synchronoss acquisition completed in February and the July 1 acquisitions of Quortex and Imagine Communications.

Lumine disclosed that total consideration for Quortex and Imagine was US$233.7-million, including US$211.3-million paid at closing and US$22.4-million of estimated deferred payments.

“LMN has now deployed more than US$500-million year-to-date in M&A, making 2026 a record M&A year after only seven months,” Dubreuil said.

CEO David Nyland said Lumine’s first full quarter of Synchronoss ownership showed the company’s ability to execute its domain-focused playbook, with revenue up 28% and operating income up 20%.

Lumine generated Q2 operating income of US$75.3-million, up from US$62.7-million a year earlier. Net income fell 35% to US$15.4-million.

Cash flow from operations was US$68.5-million, down 13%, while free cash flow available to shareholders was US$60.4-million, down 17%.

Dubreuil said the Quortex and Imagine acquisitions deepen Lumine’s presence in the media supply chain. He estimates pro forma net leverage at 0.6 times, leaving room for further capital deployment.

The analyst expects consensus estimates to move materially higher after the deals and raised his own 2026 and 2027 revenue and earnings forecasts.

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