Today, we will look at two Canadian growth stocks – Sylogist (TSE:SYZ) and Blackline Safety Corp. (TSE:BLN), to buy in March 2024, as per analysts. Wall Street experts see significantly high share price appreciation potential in these two stocks over the next twelve months.
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Growth stocks usually belong to companies whose revenues grow faster than the average. Plus, these companies typically do not pay dividends as they reinvest most of the cash flows into the business. Some of these companies even make losses initially as they spend more on research and development and business expansion. Also, they generally trade at a higher price/earnings (P/E) ratio compared to peers as investors see high earnings growth in the future. With this background in mind, let us look at the two Canadian growth stocks.
Sylogist (TSE:SYZ)
Sylogist is a Software-as-a-Service (SaaS) company providing comprehensive ERP (enterprise resource planning), CRM (customer relationship management), fundraising, education administration, and payments solutions. The company has a high P/E of 192 and its stock has gained over 69% in the past year.
For Fiscal 2023, Sylogist reported a 16.1% jump in revenue, with SaaS subscription revenue growth of 14.1%. Sylogist also announced a minimal quarterly dividend of C$0.01 per share that was paid on March 13. The company expects the momentum witnessed in Q4 to continue in Fiscal 2024.
Is Sylogist a Buy, Sell, or Hold?
With three unanimous Buys, SYZ has a Strong Buy consensus rating. The average Sylogist price target of C$12.33 implies 43.4% upside potential from current levels.
Blackline Safety Corp. (TSE:BLN)
Calgary-based Blackline Safety is a global connected safety technology company that offers gas detectors, area monitors, and lone worker devices in-house. Plus, BLN optimizes the products with its safety software, data analytics and reporting, risk mitigation, and operational efficiency. Notably, BLN stock has gained 86.8% in the past year.
Blackline Safety has a negative P/E of 13.2x since it is still making net losses. In its most recent earnings, BLN reported a 25% year-over-year growth in Q1 FY24 revenues, with an Annual Recurring Revenue (ARR) increase of 37% and Net Dollar Retention (NDR) of 130% compared to the same period last year. Also, the net loss of C$0.08 per share improved from the prior-year quarter’s loss of C$0.11 per share. The company is on track to achieve positive adjusted EBITDA in the second half of Fiscal 2024.
Is Blackline Safety Stock a Buy?
With eight Buys and one Hold rating, BLN stock has a Strong Buy consensus rating on TipRanks. The average Blackline Safety Corp. price target of C$5.75 implies 35.6% upside potential from current levels.
Ending Thoughts
The above two Canadian growth stocks have more than 35% upside potential over the next twelve months, as per analysts. Investors seeking exposure to growth stocks can consider investing in them after thorough research.
