Zacks Small-Cap Research said that technology firm Logiq Inc shares are undervalued after its 2Q revenue figures came in well above estimates.
According to its recently-released 2Q results, Logiq posted another quarter of sequential revenue growth with $8.3 million in 2Q 2021, up 3% from its previous quarter.
Zacks wrote that it believes Logiq’s stock is worth at least $17.10 per share, based on blended comparable valuations of its peers at 9.4 times enterprise value to sales.
READ: Logiq posts $8.3M in 2Q revenue as it shifts focus to high margin revenue streams
“Logiq beat our revenue estimates for the quarter with its pick up in revenues at AppLogiq,” Zacks analysts wrote.
“We had expected the quarter to be down sequentially due to the exceptionally strong quarter at DataLogiq in 1Q, but total revenues were up from 1Q 2021.
The research firm said it is looking forward to regaining year over year revenue growth in the next quarter after four down quarters due to the model shift at AppLogiq.
“Gross and operating margins have and are expected to continue to improve and investors should see valuation improvement in this ‘show-me’ stock,” analysts concluded.
Logiq is a US-based leading global provider of e-commerce and fintech business enablement solutions.
Shares of Logiq were trading over the counter on Thursday at US$3.05, and on Canada’s NEO Exchange at C$3.90.
Contact Angela at angela@proactiveinvestors.com
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