Raymond James Initiates Coverage Calling it a “prime acquisition candidate” and touting its return to profitability and growth, Raymond James’ Daniel Magder initiated coverage of Burnaby, B.C.-based Tantalus Systems Holding Inc. with an “outperform” rating and $3.25 target, matching the current average on the Street.
“The traditional power grid has structural flaws and aging infrastructure that diminish stability and increase the frequency of outages. The power grid is also subject to geographic constraints, an increasing number of extreme weather events, and the lack of monitoring, control and sufficient storage,” he said. “At the same time, global energy demand continues to increase despite constraints on new generation and insufficient storage. As consumers increasingly turn to EVs and connected devices, utilities continue to look for ways to analyze and manage their data across the grid, positioning pure-play grid tech companies like Tantalus Systems Holding Inc. (GRID-TSX) well for the future.”
“Tantalus’ grid modernization platform is at the leading edge of grid technology to help utilities modernize their grids. Centered around the TRUSense Gateway technology, Tantalus’ solutions help utilities monitor meter data and power quality metrics to address potential issues from the substation to behind-the-meter applications, such as storage, rooftop solar, water heating and EVs. ... Tantalus leverages third-party contract manufacturers in the Philippines to produce its edge-computing hardware, enabling a capital-light operating model with low capex requirements and associated working capital benefits. We believe this allows capital to be strategically allocated towards R&D and sales & marketing initiatives, further driving innovation and market penetration.”