Stifel 1:37 AM EDT, 10/27/2022 (MT Newswires) -- Stifel GMP on Thursday reiterated its buy rating on the shares of Kinaxis (KXS.TO) with a C$235.00 price target as it previewed third-quarter results from the supply-chain software company.
"KXS will report FQ3 results next week on 11/3," analyst Suthan Sukumar said in a note. "We expect another quarter of solid execution as the uncertain macro fuels greater demand for supply chain transformation. Recent earnings results by supply chain peers further support this, highlighting a generally healthy demand environment for supply chain investment, though FX headwinds and elongating sales cycles remain a common theme. At a virtual summit held by KXS earlier today, we heard several customer testimonials that spoke to increasing strategic priority for supply chain with a commitment to expanding investment in KXS, which bodes well for growth within the existing base alone. Given a robust backlog and expanding pipeline, we continue to see a strong outlook and believe there remains an attractive risk-reward on shares given KXS' strong growth and profitability profile. KXS shares trade at 6.5x C23E Revenues, vs. supply chain and comparable SaaS peers at 7.2x and 9.0x, respectively."