“Kinaxis reported disappointing Q3 results, leaving room for doubt ahead of the Q4 print and 2019 full year guide. A miss in the current environment will likely be met with a sharp sell-off which we believe is a buying opportunity. Management indicated that the total subscription revenue miss ($27.7M vs. CG est. C$28.2M) was attributable to “late stage deals slipping outside of Q3”. Nonetheless, Kinaxis remains confident on an acceleration in growth in 2019, albeit unquantified. We expect a return to 25%+ subscription growth alongside 25%+ EBITDA margin, the company’s historical target. Kinaxis has a small number (CG est. ~135) of customers who are signed up to large 3-5 year subscription contracts (average > C$1M/year).”
Young has an average return of 25.2% when recommending Kinaxis Inc.
According to TipRanks.com, Young is ranked #402 out of 4912 analysts.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Kinaxis Inc with a C$106.17 average price target.
Based on Kinaxis Inc’s latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of C$5.51 million. In comparison, last year the company had a net profit of C$7.56 million.
Kinaxis, Inc. engages in the provision of cloud-based subscription software. Its product is RapidResponse, which provides supply chain planning and analytics capabilities that create the foundation for managing multiple, interconnected supply chain management processes, including demand planning, supply planning, inventory management, order fulfillment and capacity planning. The company was founded by Duncan Klett in 1984 and is headquartered in Ottawa, Canada.
The company’s shares closed on Thursday at C$88.63.