From Globe & Mail this AM Voxtur Analytics Corp. (
) is “benefiting from a solid management team with a strong track record,” according to iA Capital Markets analyst Frdric Blondeau, touting its “conservative, flexible balance sheet with solid access to capital” as it focuses on its external growth.
Believing its valuation is “relatively attractive” at its current stage of development, he initiated coverage of the London, Ont.-based data analytics company that provides valuation solutions for real estate assets, formerly known as iLOOKABOUT Corp., with a “buy” recommendation.
“VXTR’s management has shown strong leadership since the repositioning of iLOOKABOUT, notably on the external growth front across North America, as discussed above,” said Mr. Blondeau. “We believe that leadership, combined with an already solid and growing access to capital and a flexible balance sheet, should further position VXTR as the leading consolidator within the sector.
“The Corp.’s evolving proprietary technology underpinning its digital platform has enabled it to experience exponential growth over the last couple of years and has positioned it as a market leader in the real estate data analytics market. As the company introduces new capabilities to its suite of offerings – through in-house development and external acquisitions – we expect the firm to solidify its competitive advantage over its peers with its AI-based solutions.”
Mr. Blondeau emphasized barriers to entry to this niche market for newcomers are “increasingly difficult to break through as incumbents gain even more traction in the marketplace and further tailor their services to clients.” Accordingly, he expects Voxtur to continue to remain acquisitive in the near term, seeing it possessing the potential to become a “dominant market consolidator.”
He also touted its “optionality relating to the current environment,” adding: “One particular factor is the U.S. government foreclosure moratorium, which expired on July 31. Borrowers with governmental backed loans have access to several sources for help, and could receive forbearance protections until September 30. Generally speaking, in such context, we believe both VXTR’s wealth and tax business segments are favourably positioned to benefit from the increasing demand for data, whereas foreclosures have recently been on the rise. Moreover, we expect the Corp. to create strategic partnerships with major institutions on the back of VXTR’s specific expertise.
“One additional factor that could translate into growth opportunities for VXTR is the global increase, and growing awareness, in regards to elder financial abuse and, more specifically to the U.S., the 2021 adoption of The Elder Abuse Protection Act, while there is immediate needs for private securitized solutions. Lastly, we would mention Fannie Mae, Freddie Mac and the Federal Housing Administration who, in 2020, relaxed their standards relating to property appraisals, as a potential growth vector for VXTR.”
Mr. Blondeau set a target of $2.90 per share. The average on the Street is $1.50.
“When looking at management’s track record, especially in 2020 and 2021, in parallel with expected growth, we feel the stock’s current valuation levels look compelling on 2023 numbers when looking at P/Sales, P/Book Value, EV/Sales, EV/EBITDA,” he said.
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