Haivision Strategies Is A Buy, This Analyst Says

Beacon Securities analyst Donangelo Volpe initiated safety of Haivision Strategies (Haivision Stock Quote, Chart, Info, Analysts, Financials TSX:HAI) on Oct. 15 with a “Buy” rating and $7.00 aim value, saying the company’s newest strategic pivot positions it for a return to double-digit revenue and EBITDA growth by the use of 2029.

“Our value aim depends on a ten.5× various of our FY2026 adjusted EBITDA forecast,” Volpe talked about.

The Montreal- and Chicago-based agency, based mostly in 2004, is a worldwide chief in real-time video streaming and networking choices serving the media and leisure, enterprise, and defence markets. Haivision provides completely built-in video infrastructure strategies that assist the entire video lifecycle, from contribution to distribution to produce, enabling high-quality, low-latency, secure IP video communications for mission-critical operations.

Volpe talked about Haivision’s strategic exit from lower-margin managed suppliers and its give consideration to proprietary {{hardware}} and software program program have streamlined operations, decreased inventory requirements, and created a additional scalable, asset-light model.

“Haivision’s pivot away from third-party system integration in the direction of a pure manufacturing and software-driven model, coupled with its rental program for Aviwest transmitter merchandise, is predicted to drive recurring revenue and higher profitability,” he talked about.

The company’s third quarter of fiscal 2025 marked “an inflection degree,” with double-digit revenue growth, rising recurring revenue, and stabilized working payments resulting in a return to double-digit EBITDA margins.

Volpe moreover pointed to Haivision’s sturdy gross margin profile , above 70%, and the potential to exceed 20% EBITDA margins with scale, together with that the company’s monitor doc of worthwhile acquisitions provides “extra optionality for growth.”

He talked about Haivision in the mean time trades at a 35% low value to pals, at 1.0× product sales and 7.6× adjusted EBITDA (based mostly totally on FY2026 estimates), versus comparable companies at 2.7× product sales and 11.7× adjusted EBITDA.

“Given its scalable model, recurring revenue progress, and bettering margin trajectory, we see a compelling risk/reward different for merchants,” Volpe talked about.

Volpe talked about that Haivision must do $9.5-million in Adjusted EBITDA on revenue of $132.4-million in fiscal 2025, bettering to $20.3-million on revenue of $150.6-million in fiscal 2026.

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