Aegis Capital, price target of $5.70. Commentary: Aegis Capital Launches Coverage on AcuityAds (TSXV:AT) We are pleased to announce that
Aegis Capital, a U.S. based investment banking firm, has initiated coverage on AcuityAds
(TSXV:AT) with a
price target of $5.70. We at Virtus thought we would take this opportunity to share some of Aegis’ investment highlights with our readers as well as provide a brief update on the company.
- Price target of $5.70 on revenue of $79.5M and $106.7M in 2017 and 2018 respectively. Note that these figures do not reflect the potential of any new acquisitions.
- Adjusted EBITDA of $4.9M and $9.3M in 2017 and 2018 respectively.
- Positive earnings and free cash flow to the firm, with the latter projected to achieve $0.02/share and $0.16/share in 2017 and 2018 respectively.
While the price target listed is lower than those of other firms (average without Aegis is $6.07), we believe the firms expectations regarding the company’s revenue growth and profitability bodes well for investors.
On no news, the stock has found itself humming around the $4.00-$4.30 which we believe is a very strong entry point for new investors and those looking to add to existing positions. While we have seen little in the way of press releases as of late out of the company, business continues to operate as usual and the company is in the midst of its integration with its latest acquisition, Visible Measures. It is important to note that Q1’17 financial results
did not contain any revenue from the most recent acquisition of Visible Measures and these results will be reflected in the coming quarter. As well, we do note that management has expressed that M&A continues to be a central theme for the company and they will actively pursue searching for values that add value on both the top line and in terms of technology.
It is our belief that any sell-off by investors as of late is simply due to impatience or a very short-term investment horizon. With many large buy-side financial institutions getting behind AcuityAds, we believe the that the company is very well positioned to continue being one of Canada’s most successful technology stories.