RE:Cantor reportI spoke with Rene two weeks ago and Scott Curtis (Cantor analyst) has left the firm. He didn't know if anyone was going to pick up coverage on RX.
Rene seemed confident that they would be able to continue growing the business at 25%+/year for the forseeable future with the existing product shelf.
He also noted that the opportunity pipeline was as robust as ever. Of course he couldn't tell me about the deals they are working on but reading between the lines I expect them to be adding new products this year. Last year was a transition year for the company as they expanded their sales staff and moved offices. I expect this year to be more about growth and adding new products. If we assume earnings in 2016 growth 25% and add a multiple of 25 to those earnings we get to a one year target price of $8.75. Again, this assumes no acquisitions. RX remains one of the best screening stocks in Canada. It's very impressive that they are able to organically grow at the rates they do with high ROE and no leverage. Companies like this are very few and far between.