Wall Street analyst has provided a rating update for the Technology company today, while remaining neutral on the stock. Analyst Doug Taylor from Canaccord Genuity remains neutral on Absolute Software (TSX: ABT) and has a C$7.50 price target.
Taylor observed:
“This afternoon, Absolute Software Interim CEO Steve Munford presented at in Boston. As the company exits a period of reinvestment, the expectation is for growth to re-accelerate. We look forward to Q4 results and F2019 guidance which will be reported next Monday, after market close. Expectations are for 6 – 7% top-line growth in the upcoming fiscal year. Absolute shares are HOLD-rated as we see 2.0x EV/EBITDA as fair in light of the current growth outlook. We see upside to this valuation as the company builds confidence that it can re-accelerate growth to double-digit levels, which SaaS peers show can support higher valuations. Our target price is C$7.50.”
Taylor has an average return of 12.1% when recommending Absolute Software.
According to TipRanks.com, Taylor is ranked #1194 out of 4850 analysts.
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Currently, the analyst consensus on Absolute Software is a Moderate Buy with an average price target of C$8.88.
Absolute Software’s market cap is currently C$306.3M and has a P/E ratio of 0. The company has a Price to Book ratio of -4.13.
Absolute Software Corp. engages in the provision of endpoint security and data risk management solutions to commercial, healthcare, education, and government customers. The firm operates through the following geographical segments: United States, Rest of the World, and Canada.
The company’s shares closed on Wednesday at C$7.55.
