On the back of strong quarterly results, Laurentian Bank Securities analyst Nick Agostino is feeling the pull more strongly from cybersecurity company Magnet Forensics (Magnet Forensics Stock Quote, Charts, News, Analysts, Financials TSX:MAGT). Agostino maintained a “Buy” rating on the stock in a Wednesday report while raising his target price from C$36.00 to C$38.00, implying a one-year return of 35.8 per cent. Waterloo-based Magnet Forensics, which offers a suite of digital investigation tools for private and public sector clients, announced on Wednesday its third quarter 2022 financials, featuring revenue up 41 per cent year-over-year to $25.0 million and adjusted EBITDA up 25 per cent to $5.9 million. (All figures in US dollars except where noted otherwise.) The company said it won new customers across both its public safety and private enterprise markets across Europe, Asia and North America, while also announcing over the quarter its expansion into Australia. Management increased its guidance for the full 2022 year, calling now for sales of between $96 and $98 million, up by $3.5 million and implying fourth quarter sales of between $28 and $30 million. “Our solutions address the key challenges faced by public safety organizations and private enterprises dealing with digital investigations and incident response. As cybersecurity threats remain top of mind, both the public and private sector are prioritizing cybersecurity within their budgets,” said CEO Adam Belsher in a press release. Magnet’s Q3 top and bottom lines beat analysts' estimates, where the $25.0 million revenue and $5.9 million EBITDA compared to Laurentian’s forecasts at $24.0 million and $5.4 million, respectively, and the consensus calls at $24.0 million and $3.7 million, respectively. Key takeaways from the quarter for Agostino were new product adoptions which are increasing Magnet’s annual recurring revenue, strong EBITDA, multiple sales tailwinds including the Ukraine war, Taiwan tensions and ‘work anywhere’ programs, all of which have led to increases in security spend. Agostino also noted that Magnet’s balance sheet, at about $140 million in cash, is supportive of more tuck-in acquisitions. “Enterprise customers in general are seeking a single solution platform which bodes well for MAGT as these customers seek a comprehensive solution capable of Cloud, PC and mobile device investigation. Clients are also pushing for a more pro-active cybersecurity solution that is capable of detecting potential security risks, following a pro-active scan, spurring demand for products such as IGNITE and AXIOM Cyber,” Agostino wrote. “In our view the results speak for themselves, the sales and EBITDA beat along with the raised guidance, growing pipeline and favourable market environment support our thesis of sustainable growth demand going forward, in particular for MAGT’s differentiated IP solutions,” he said.