top pick from Echelon Quisitive Technology Solutions (Quisitive Technology Solutions Stock Quote, Charts, News, Analysts, Financials TSXV:QUIS)
- Echelon rating: Speculative Buy
- Target price: $2.75
- Projected one-year return: 135.0 per cent
A provider of Microsoft professional services, digital consulting company Quisitive comes into 2022 with prospective catalysts concerning the commercialization of its LedgerPay platform along with potential accretive acquisitions to leverage LedgerPay’s capabilities in payments and IT Services. That’s according to Goff, who is looking for organic revenue growth to exceed expectations over the new year.
“Expectations for a transformative 2022 are led by LedgerPay commercialization and accretive ISO acquisitions, where migration of ISO merchants onto the LedgerPay platform has the potential to reduce pro forma valuations by 3- 5 turns. IT Services-related acquisitions are expected to add revenue synergies in addition to scale efficiencies over the longer-term horizon,” Goff wrote in a January 4 update.
“We look for further IT Services contracts to facilitate QUIS gaining scale and leverage as an inner circle Microsoft partner and continue to see QUIS acquiring ISOs at 10x EV/EBITDA or 6-7x adjusted for migration-related recapture,” he said.