Plurilock Security Inc. (TSX-V:PLUR) offers investors a compelling risk-reward profile and a great entry point to the stock, according to analysts at Industrial Alliance Securities, who have initiated coverage on the cybersecurity solutions company with a ‘Buy’ rating.
Analysts at the firm set a $0.65 price target, writing that “while some tech names were trading at excessive numbers, PLUR looks like a relative bargain and is trading at just a blended 2023 EV/revenue multiple of 0.1x, which is significantly below its value-added reseller (VAR) peers at 0.6x.”
Plurilock is currently trading at around $0.16 per share.
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In their report, the analysts highlighted the company’s unique and continuous solutions for endpoint authentication, which allows users to identify threats and unauthenticated use on its endpoints in a matter of minutes.
“In an increasing shift to remote working, companies are facing new and more complex cybersecurity threats as endpoints and communications are no longer protected by a physical barrier and through on-premise storage,” they said.
The analysts also noted the company’s VAR rollup strategy should help boost its top line while providing a lucrative cross-selling opportunity, assuming Plurilock’s acquisition of cybersecurity and cloud security provider CloudCodes closes.
“We expect this unique cross-selling opportunity to fuel the revenue growth of the company’s technology division by 200%+ in both 2022 and 2023,” they added.
Plurilock Security provides identity-centric cybersecurity for today's workforce.
Contact the author Emily Jarvie at emiy.jarvie@proactiveinvestors.com
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