Haivision Methods is a purchase, this analyst says

Beacon Securities analyst Donangelo Volpe initiated protection of Haivision Methods (Haivision Inventory Quote, Chart, Information, Analysts, Financials TSX:HAI) on Oct. 15 with a “Purchase” score and $7.00 goal worth, saying the corporate’s latest strategic pivot positions it for a return to double-digit income and EBITDA development by means of 2029.

“Our worth goal relies on a ten.5× a number of of our FY2026 adjusted EBITDA forecast,” Volpe mentioned.

The Montreal- and Chicago-based firm, based in 2004, is a worldwide chief in real-time video streaming and networking options serving the media and leisure, enterprise, and defence markets. Haivision gives totally built-in video infrastructure methods that help the complete video lifecycle, from contribution to distribution to supply, enabling high-quality, low-latency, safe IP video communications for mission-critical operations.

Volpe mentioned Haivision’s strategic exit from lower-margin managed providers and its give attention to proprietary {hardware} and software program have streamlined operations, decreased stock necessities, and created a extra scalable, asset-light mannequin.

“Haivision’s pivot away from third-party system integration towards a pure manufacturing and software-driven mannequin, coupled with its rental program for Aviwest transmitter merchandise, is predicted to drive recurring income and better profitability,” he mentioned.

The corporate’s third quarter of fiscal 2025 marked “an inflection level,” with double-digit income development, increasing recurring income, and stabilized working bills leading to a return to double-digit EBITDA margins.

Volpe additionally pointed to Haivision’s sturdy gross margin profile , above 70%, and the potential to exceed 20% EBITDA margins with scale, including that the corporate’s monitor document of profitable acquisitions gives “additional optionality for development.”

He mentioned Haivision at the moment trades at a 35% low cost to friends, at 1.0× gross sales and seven.6× adjusted EBITDA (based mostly on FY2026 estimates), versus comparable corporations at 2.7× gross sales and 11.7× adjusted EBITDA.

“Given its scalable mannequin, recurring income growth, and bettering margin trajectory, we see a compelling threat/reward alternative for traders,” Volpe mentioned.

Volpe mentioned that Haivision ought to do $9.5-million in Adjusted EBITDA on income of $132.4-million in fiscal 2025, bettering to $20.3-million on income of $150.6-million in fiscal 2026.

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