Globe says Wishpond Technologies boosted to “buy”

Wishpond Technologies Ltd (C:WISH) Shares Issued 53,770,120 Last Close 5/26/2023 $0.60 Friday May 26 2023 – In the News   The Globe and Mail reports in its Friday, May 26, edition that Eight Capital analyst Christian Sgro has elevated his recommendation for Wishpond Technologies to “buy” from “neutral.” The Globe’s David Leeder writes in the Eye On Equities column that Mr. Sgro gave his share target a 20-cent lift to $1.30. Analysts on average target the shares at $1.88. On Thursday Wishpond posted first quarter revenue of $5.6-million, up 38 per cent year-over-year and above both Mr. Sgro’s $5.4-million estimate and the consensus forecast of $5.5-million. Adjusted earnings before interest, taxes, depreciation and amortization grew 0.6 per cent to $200,000, also topping expectations (nil and $100,000). Mr. Sgro says in a note: “We like that revenues were stable sequentially (despite advertising seasonality), highlighting a shift to a greater proportion of recurring contracted revenues. … We think it is too soon to value Wishpond on a profitability multiple, although we see a clear path to 15-per-cent-plus adjusted EBITDA margins with scale. For reference, Wishpond currently trades at 11.5 times 2024 estimated EV/adj. EBITDA which we see as valuation support.” The Globe says Mr. Sgro calls Wishpond’s financial profile “attractive.”