Today, an analyst has provided a rating update for the Consumer Goods sector company, Evertz Technologies (TSX: ET). Analyst Robert Young from Canaccord Genuity rated Evertz Technologies (TSX: ET) a Buy, setting a C$18.25 price target.
Young observed:
“FQ4 was a messy quarter but we believe the optics are worse than reality. Quarterly financial metrics missed our forecast and consensus across the board. One-time cost items (a C$3.4M inventory write-down and a C$4.5M SR&D tax provision) negatively impacted the bottom line while the timing of shipments on larger deals pushed revenue from the quarter into the backlog. With the shift of revenue, Evertz reported a massive sequential uptick in its backlog + shipment metric heading into Q1/F19. The ~$10M revenue miss on our estimate appears to be contained in the backlog which was up C$9M the end of May. We remain confident that Evertz has a competitive lead on IP-based products over its traditional broadcast equipment vendor competition based on feedback at NAB in April. We also believe that Evertz is making strong inroads into the Pro A/V space.”
Young has an average return of 5.9% when recommending Evertz Technologies.
According to TipRanks.com, Young is ranked #359 out of 4829 analysts.
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Evertz Technologies has an analyst consensus of Moderate Buy, with a price target consensus of C$18.25.
Evertz Technologies’ market cap is currently C$1.31B and has a P/E ratio of 20.1. The company has a Price to Book ratio of 3.93.
Evertz Technologies Ltd. engages in the design, manufacture, and distribution of video and audio infrastructure solutions for the television, telecommunications, and new media industries. It offers routers; infrastructure products; compression products; multi-viewers; video replay; production and post-production; master sync, clock and test; monitoring, control, and new management system; fiber and transport products; and playout and media management. The company was founded on May 28, 1981 and is headquartered in Burlington, Canada.
The company’s shares closed on Tuesday at C$17.19.
