TSX:DND - Post Discussion
Post by
alhiemstra on Jun 28, 2022 4:34pm
Motley Fool
2 Growth Stocks Canadians Can Buy Amid the Market Selloff
Canadian growth stocks such as Dye & Durham and Docebo are trading at an attractive valuation multiple given the stock market selloff.
Aditya RaghunathPublished
Dye & Durham
Cloud-based software and technology company Dye & Durham (TSX:DND) primarily services legal firms across Canada, the U.K., Australia, and Ireland. With 77% of Canadian legal professionals stating that the industry is long overdue for a digital transformation, DND is expected to deliver robust growth in the years to come.
While the company’s last two acquisitions have come under fire from regulatory authorities in the U.K. and Australia, its blue-chip customer base, including law firms, financial service institutions, and government organizations, should drive its growth in 2022 and beyond.
DND’s revenues and adjusted EBITDA rose 78% year over year to $122.9 million and $66.8 million in the first three months of 2022. Despite the challenging macro-economic conditions, DND’s impressive growth can be attributed to the realization of revenue synergies from prior acquisitions.
This growth trajectory is expected to continue, as analysts expect DND’s annual revenues to increase 130.7% in the current year and 26.7% in 2023. The company’s bottom line is expected to improve 145.8% year over year in fiscal 2022 and 315.2% in fiscal 2023.
DND shares are expected to rebound in the upcoming months as well, after plummeting 54.66% year to date. The consensus price target of $46.67 indicates an upside potential of 110.7%.
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