Quarterhill Inc T.QTRH

Cannacord just raised price target.

[v_guerriero]

Says money will be spent in "short order" on ITS acquisition adding another 10-15M of EBITDA.

The new price target doesn't include the upside for the unannounced M&A.  Will revisit price target again after M&A announcement or further success on WiLan.  They note they have a materially lower expectation of WiLan vs all other analysts.

[cabbieJBJ]

v_g, check your inbox.  TIA

[cabbieJBJ]

What was Canaccord's new target?

[v_guerriero]

3.25.   Average of all analysts now 3.90. he is very punitive to the WiLan business.  Assumes it is only worth 0.45/share.  Believes WiLan declines from $30M cash generation per year to $6M in perpetuity.   He admits that he is an outlier to all other analysts.   He basically says in his report that he is going to raise the target again.  This is important

[cabbieJBJ]

That is bizarre. In his scenario Wilan cannot even be considered the ITS banker.

[v_guerriero]

He values ITS at $3.20... and that is pre-announcement of the next ITS transaction. I think he was just using "goal-seek" to figure out what the market was valuing WiLan at.   He is basically saying - as all other analysts are -that the market value the WiLan segment at ZERO. And frankly at today's prices it is valued at -30M.  

[cabbieJBJ]

run a yard sale. The file cabinetc must be worth something. Lol

[Joey67]

This post has been removed in accordance with Community Policy

[Justhalffull]

Any Cannacord projections of Quarterhill are biased.  They have Quarterhill present at their investor conferences, therefore cannot say anything negative.