RBC Dominion Securities analyst Paul Treiber added Lifespeak Inc. (LSPK-T) to the firm’s “Canadian Small Cap Conviction List” on Tuesday.
The list now consists of 23 stocks which are expected to “deliver strong absolute returns.”
“We believe LifeSpeak is well positioned to complete several deals in 2H/FY21,” said Mr. Treiber. “Our forecast calls for LifeSpeak’s ARR to grow 64 per cent 2H/1H to $37.6-million FY21, as a result of successfully closing new customer wins and expansions with existing customers. Due to LifeSpeak’s small size, ARR is subject to some variability due to timing of wins. ARR increased 132 per cent year-over-year Q2, vs. 165 per cent Q1, due to some deals that moved from Q2 into Q3, which sets up for a strong 2H. Year-to-date, LifeSpeak has added enterprise clients including Magna International, FedEx Canada, Lego Group, Celestica International, Majorel Group, among others. In addition, LifeSpeak has signed Lime Global, 1:1 help.net, and T-Cup Studios to embedded agreements. The company is tracking to 80 customer wins in FY21 vs. ‘60+’ in FY20.”
Seeing its valuation as “attractive given the company’s growth and profitability,” Mr. Treiber has an “outperform” rating and $13 target for shares of the Toronto-based mental-health content creator. The average target is $12.67.
The other stocks on the list are: Alaris Equity Partners Income Trust (AD.UN-T); Argonaut Gold Inc. (AR-T); BSR Real Estate Investment Trust (HOM.U-T); Cargojet Inc. (CJT); Chemtrade Logistics Income Fund (CHE.UN-T); ECN Capital Corp (ECN-T); European Residential REIT (ERE.UN-T); Home Capital Group Inc. (HCG-T); Jamieson Wellness Inc. (JWEL-T); Interfor Corp. (IFP-T); Major Drilling Group International Inc. (MDI-T); Minto Apartment REIT (MI.UN-T); Osisko Mining Inc. (OSK-T); Park Lawn Corp. (PLC-T); Points International Ltd. (PCOM-T); Precision Drilling Corp. (PD-T); Storm Resources (SRX-T); Tamarack Valley Energy Ltd. (TVE-T); Transcontinental Inc. (TCL.A-T); Tidewater Midstream & Infrastructure Ltd. (TWM-T).