This Canadian tech inventory is a purchase, Beacon Securities says

Beacon Securities analyst Donangelo Volpe reiterated a “Purchase” score on Haivision Methods (Haivision Methods Inventory Quote, Chart, Information, Analysts, Financials TSX:HAI) and raised his worth goal to $12.25 from $8.00 in a Feb. 6 report, reflecting the introduction of fiscal 2027 estimates and a roll-forward of valuation following record-setting fourth-quarter outcomes.

Volpe mentioned Haivision has began 2026 strongly, with shares up 64% 12 months up to now on the time of writing. The upper goal is predicated on an unchanged 12x Adjusted EBITDA a number of, now utilized to fiscal 2027.

He launched fiscal 2027 estimates calling for $168-million in income and $31-million in Adjusted EBITDA, representing year-over-year development of roughly 10% and 50%, respectively. The outlook implies an Adjusted EBITDA margin of about 18%, an enchancment of roughly 500 foundation factors, pushed primarily by income scale and comparatively flat working bills.

For fiscal 2026, Volpe made solely minor changes following administration steerage for income of not less than $150-million, comparatively flat working bills of about $100-million, and greater than 50% development in Adjusted EBITDA. His up to date fiscal 2026 forecast requires $152.8-million in income and $20.7-million in Adjusted EBITDA. First-quarter fiscal 2026 estimates have been left unchanged.

Volpe mentioned the renewal of Haivision’s regular course issuer bid permits the corporate to repurchase as much as 1.8 million shares by means of early February 2027. Below the prior NCIB, Haivision repurchased 977,000 shares at a weighted common worth of $4.45, which Volpe views as extremely accretive given the present share worth. He famous the corporate ended the 12 months with greater than $17-million in money and minimal borrowings on its $35-million credit score facility.

On valuation, Volpe mentioned Haivision trades at roughly 8.4x his fiscal 2027 Adjusted EBITDA estimate, representing a reduction of about 30% to friends buying and selling close to 12.0x. He mentioned the low cost is unwarranted given expectations for double-digit development, gross margins above 70%, and the potential to exceed 20% EBITDA margins with scale.

Volpe mentioned that Haivision’s publicity to defence and space-related markets helps the case for a re-rating as profitability continues to enhance.

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Cantech Letter founder and editor Nick Waddell has lived in 5 Canadian provinces and is happy with his nation’s typically neglected contributions to the world of science and know-how. Waddell takes a daily shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications resembling Canadian Enterprise and Enterprise Insider.