Analysts at PI Financial have reiterated their ‘Buy’ rating and C$1.75 price target for Wishpond Technologies after the marketing-focused business solutions provider posted strong fiscal 4Q and full-year 2023 financial results.
Wishpond’s Toronto-listed shares are currently trading at C$0.63.
The analysts highlighted that the company reported record revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) during the fiscal fourth quarter.
“WISH’s 4Q annual results continue to demonstrate strong revenue driven by organic growth with a 39% increase year-over-year,” the analysts wrote in a note to clients.
“Revenue for the quarter beat our estimate at C$5.9 million versus C$5.6 million estimated. Additionally, adjusted EBITDA for 4Q also beat our estimate at C$687,000 versus C$600,000 estimated.”
They also noted the company’s record annual revenue of $20.5 million, stating that management continues to outperform expectations.
Looking ahead, the analysts wrote that the release of Wishpond’s new product at the end of 1Q, its all-in-one marketing and sales solution Propel IQ, should propel growth. The company is also continuing to expand its sales team, PI Financials’ analysts noted.
“We believe this hiring surge will enable WISH to hit or exceed its growth target of 30% to 40% revenue growth (we are assuming a 30% growth in our model),” they wrote.
“WISH anticipates achieving record revenue and cash flows in 2023, driven by organic growth from ramping up sales of the newly released Propel IQ bundled product offerings, increasing the size of its sales team, and new product introductions.”
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