One of Canaccord's Top Picks for 2021 Ottawa-based Kinaxis Inc. (
) is a cloud-based supply chain management software provider.
The share price has been under pressure. On Dec. 14, Blue Yonder Group Inc. announced that it filed a lawsuit against Kinaxis for patent infringement. In addition, the share price plunged after the company released its third-quarter results.
With a target price of $250, analysts Robert Young and Richard Davis have a positive outlook on the stock despite the recent challenges, “Kinaxis shares are down approximately 20 per cent since its Q3 [third-quarter] results, due to a customer non-renewal. Investor concern on COVID-induced contract delays and potential for non-renewals, and the optics of weaker subscription term (on-premise customers) in 2021, together become a tailwind in 2022 as three-year contracts renew.”