Vitalhub "one of our best names" further EBITDA margin accretion from cost optimization of recent acquisitions, along with continued operating leverage with the growth in recurring revenues,” Leung wrote.
Looking ahead, Vitalhub is targeting about 15 per cent year-over-year organic growth with about 25 per cent EBITDA margins, and Leung said the company could hit that mark by the calendar year-end.
“As it relates to the demand environment, despite challenging macro conditions in the UK, the company remains bullish on the region, along with Canada. From a product perspective, the company continues to see a strong pipeline for its TREAT and Transforming Systems product platform,” Leung wrote.
“With its predictive business model, resilient industry fundamentals, compelling product portfolio, and strong management team, we continue to view VitalHub as one of our best small-cap technology names under coverage,” he said.