Cannacord Upgrade to $7.00 Canaccord Genuity analyst Doug Taylor upgraded Blackline Safety Corp (BLN:CN) (OTC: BLKLF) from Spec. Buy to Buy with a price target of Cdn$7.00 (from Cdn$5.50).
The analyst comments: "We are increasing our target on Blackline to $7.00 (from $5.50) and our rating to BUY (from SPECULATIVE BUY). The increased target comes as we roll forward our model after better-than-anticipated Q3 results which demonstrate the company continuing to aggressively take share in the connected safety market. Given the highly anticipated pivot to positive EBITDA with a view to positive cash flow next year, we believe the risk profile of the company has improved. In recognition of this, we are dropping the "speculative" qualifier and reducing our discount rate, resulting in a higher target price. We see further upside as the company grows into its "rule-of-40" aspirations with a profitability profile which should broaden its investor appeal."