Plurilock Security Inc is an attractive investment opportunity following the completion of its Atrion Communications Inc asset acquisition, according to analysts at Leede Jones Gable who have maintained their ‘Buy’ rating on the stock with a C$1 price target.
Plurilock’s TSX Venture Exchange-listed stock is currently trading at about C$0.19.
On September 26, the company’s subsidiary Aurora Systems Consulting Inc completed the acquisition of certain assets of New Jersey-based Atrion, which Plurilock said would provide the company with additional network infrastructure and security solutions such as procurement services, professional services, and solutions integrations, managed services, and cybersecurity consulting.
READ: Plurilock Security completes Atrion acquisition
Leede Jones Gable analysts noted that in the 2022 financial year Atrion generated US$14 million (C$19.2 million) in revenue, a gross profit of US$3.3 million (C$4.5 million) and positive earnings before interest, taxes, depreciation, and amortization (EBIDTA) of US$533,000 (C$730,000).
They added that Atrion would expand Plurilock’s geographic footprint, facilitating access and ongoing growth opportunities in the eastern United States.
“In addition, it gives Atrion access to sell Plurilock’s technology, which addresses some of the biggest IT challenges today,” they wrote in a note.
“Its current customer base includes, a Fortune 500 North American provider of food services and facility management, a leading multinational pharmaceutical company and several renowned American hospitals and medical centers.”
Analysts noted that their C$1 price target represented 1.2 times the broker’s 2023 revenue estimate for Plurilock.
Plurilock is an innovative, identity-centric cybersecurity company that reduces or eliminates the need for passwords, extra authentication steps, and cumbersome authentication devices.
Contact the author at emily.jarvie@proactiveinvestors.com
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