Beacon Securities analyst Gabriel Leung believes Kraken Robotics (Kraken Robotics Stock Quote, Chart, News TSXV:PNG) has provided plenty of reasons for optimism, maintaining his \u201cBuy\u201d rating and target price of $1.00\/share with a potential return of 156 per cent in an update to clients on Monday. Based in Newfoundland, Kraken Robotics is a marine technology company providing ultra-high resolution, software centric-sensors and underwater robotic systems. Leung\u2019s latest analysis comes after the company provided updates on some of its ongoing projects in its Robotics as a Service (RaaS) operations, with the company noting that the integration of recent acquisition PanGeo was going well, with PanGeo\u2019s engineering team now moved into Kraken\u2019s Newfoundland facilities and both teams also now working on several large projects, with an aim toward having all Newfoundland employees integrated in Kraken\u2019s Mount Pearl facilities by the first quarter of 2022. \u201cRecall that Kraken\u2019s RaaS business, which was recently augmented by the acquisition of PanGeo, is expected to accelerate Kraken\u2019s recurring revenues and diversify its revenue streams more significantly into the offshore renewable energy market,\u201d Leung said. PanGeo is experiencing strong offshore utilization in Kraken\u2019s fourth quarter, with six ROV-mounted Sub-Bottom Imagers (SBI), two shallow water mounts (GeoLink and GeoArm) and the remotely-operated SeaKite unit performing sub-seabed imaging in locations in Europe and Asia Pacific. In regards to the rest of the RaaS operation, Leung notes that the company recently completed its first commercial RaaS campaign using its KATFISH towed underwater vehicle, undertaking a subsea cable inspection campaign in the Strait of Bell Isle. Meanwhile, the company noted that its SeaVision laser scanning services have experienced strong interest from the offshore oil and gas and renewable energy markets (including large global providers) for critical subsea asset inspection, with paid demonstrations in place in North America, Europe, Africa, and Brazil through the fourth quarter of 2021 and first quarter of 2022. \u201cKraken\u2019s RaaS is a cloud-based robotics rental \/ licensing business model that enables customers to incorporate the robotic capabilities they need when they need them, upgrade or downgrade systems as requirements change and deploy robotics without the necessary costs required by more traditional robotics implementations,\u201d said Karl Kenny, Kraken\u2019s President and CEO in the company\u2019s October 25 press release. \u201cRaaS works by utilizing Kraken\u2019s internally developed IP including our subsea sensors and robotics hardware, artificial intelligence algorithms and cloud-based data analytics. This allows customers to rapidly spool up and deploy operations, significantly reduce upfront capital equipment and operational expenditures and adjust survey and inspection capabilities on the fly," Kenny said. \u201cFor customers trying to improve productivity and reduce risk but have thought robots were out of their price range, Kraken\u2019s RaaS offers a very compelling alternative for both underwater defence and commercial applications,\u201d Kenny added. The news only got better for Kraken on Monday, as the company also announced it had secured a $500,000 RaaS contract with the Canadian government for testing of Kraken\u2019s ultra-high resolution survey equipment with the Royal Canadian Navy (RCN) at its Fleet Diving Unit - Atlantic in Halifax, which will be funded under the Canadian government\u2019s Innovative Solutions Canada program. \u201cKraken is excited to be able to offer RaaS to the RCN as an \u201cEarly Adopter\u201d to augment existing RCN Route Survey with a Service offering based on the latest SAS technology available,\u201d Kenny said in a separate press release. \u201cKraken seeks to offer our Robotics as a Service globally, in particular to other NATO allies, and this contract for the RCN\u2019s evaluation will serve as an excellent reference. The RCN\u2019s objective comparison of the data from our RaaS offering against legacy sonar data will provide demonstrative evidence of the superior image resolution and accuracy of Kraken survey data.\u201d Leung\u2019s financial forecasts remain unchanged from his previous analysis, as he has Kraken reaching $28.1 million in revenue for 2021, which would be a potential 128 per cent year-over-year increase, before climbing to a projected $37 million in 2022, a potential 31.7 per cent year-over-year increase. In addition, after reporting a $2.7 million loss in 2020, Leung projects the adjusted EBITDA will swing positive for the first time in 2021 at $3.9 million for a 13.9 per cent margin, then rising to a projected $4.7 million, though the margin would drop to 12.8 per cent. Leung\u2019s valuation data puts Kraken in a good light, as he projects the EV\/Sales multiple to drop from 5.9x in 2020 to a projected 2.6x in 2021, then dropping to a projected 2x in 2022. With EBITDA projected to turn positive in 2021, Leung\u2019s EV\/EBITDA multiple projections begin there at a revised rate of 18.7x (previously 21.2x), then dropping to a projected 15.3x (previously 17.4x) for 2022. Overall, the share price for Kraken Robotics has dropped by 29 per cent for the year to date, hitting a peak price of $0.99\/share on February 18 before bottoming out at $0.38\/share on October 21.