BSM Tech Gets a Buy Rating from Canaccord Genuity

BSM Tech (TSX: GPS), the Technology company was revisited yesterday, and remains undervalued for at least one analyst on the street. Analyst Doug Taylor from Canaccord Genuity remains bullish on the stock and has a C$1.75 price target.

Taylor said:

“BSM reported Q2/18 (March) results overnight that were a bit shy of our expectations on both revenue and EBITDA. Softer hardware sales (low volume) continue to weigh on the top line and profitability while recurring revenue has yet to show any meaningful growth to offset other lumpy revenue streams. Gross subscriber adds were below the average of last several quarters, though the churn rate was within the targeted range, leading to modest net adds. The company will host a call at 8:30am tomorrow; we expect the focus will be on the growth profile and margin outlook as the company is more than halfway through the investment cycle. We maintain a BUY rating and a C$1.75 target.”

Taylor has an average return of 13.7% when recommending BSM Tech.

According to TipRanks.com, Taylor is ranked #1052 out of 4793 analysts.

Read also: Qualcomm (QCOM): Attractive Risk/Reward at Play? Top Analyst Weighs In

BSM Tech has an analyst consensus of Moderate Buy, with a price target consensus of C$1.75.

BSM Tech’s market cap is currently C$105.3M and has a P/E ratio of 0. The company has a Price to Book ratio of 1.22.

BSM Technologies, Inc. develops and provides proprietary software-focused solutions to its customers in Canada, the United States and around the world. It also provides remote monitoring, fleet tracking, and fleet maintenance, and business intelligent engine providing real time, web-based tracking of mobile and fixed assets through its subsidiary, BSM Wireless, Inc. Its solutions include communication agnostic, capable of being deployed over cellular, Wi-Fi, or satellite networks. It also provides solutions for commercial, government, and law enforcement organizations that manage and operate diverse assets and large fleets, and seek to enhance customer service, improve the safety of their drivers and vehicles, and lower business costs. The company was founded on July 29, 1996 and is headquartered in Toronto, Canada.

The company’s shares closed on Thursday at C$1.30.