More Canaccord Comments via Capital Research AcuityAds Holdings Inc. (TSX:AT). Canaccord Genuity analyst Aravinda Galappatthige raised his target price on the digital media solutions provider to $33 per share from $21, while maintaining a “Buy” rating on the stock, as he expects to see “continued strength in profitability” when the Company reports its fourth-quarter results on March 2.
“With its strong balance sheet (net cash of over $10 million), an infrastructure that can arguably support 3-4 times the current revenue base, we believe the Company is well poised to derive additional value from M&A. AcuityAds’ reliance on M&A thus far has generally been quite measured. We believe that management will lean more in this direction going forward, given the magnitude of the potential accretion. The strengthening currency of AT shares and the likely U.S. listing in 2021, further supports this strategy.”