Tribe Property Technologies Inc (TSX-V:TRBE) continues to execute well on integrating prior acquisitions and growing its footprint of communities according to analysts at Stifel GMP.
The broker was commenting after the property management company posted broadly in line quarter three results.
Delivery delays for new construction remain a headwind given supply chain/labor challenges, though a catchup was noted this quarter with expectations for a rebound in activity in early quarter one, while an earlier commercial roll out of their new services marketplace sets the stage for higher margin revenue growth ahead, analysts suggested.
READ: Tribe Property Technologies reaps 3Q revenue bump from acquisitions
M&A will remain a primary growth pillar and the company continues to target a broad range of assets with a skew to larger, more profitable acquisitions that offer strategic value through an expanded footprint nationally and/or geographic diversification, the broker noted.
“Given their highly recurring revenue base, we expect that the company will have access to commercial debt to help fund larger M&A opportunities.”
Stifel remained positive on the company: “We continue to see a long runway for Tribe to drive digitization of property management, particularly in a challenging macroeconomic backdrop where cost management and operational efficiencies become more important strategic priorities.”
The broker reiterated a 'Buy' rating with a C$4 per share price target and concluded: “We believe Tribe’s stronger growth and margin profile from its differentiated tech-enabled services model warrants a premium to legacy services peers.”
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