Thanos Moschopoulos, an analyst from BMO Capital, maintained the Buy rating on Kinaxis Inc (KXS – Research Report). The associated price target was raised to C$190.00.
Thanos Moschopoulos has given his Buy rating due to a combination of factors including Kinaxis Inc’s strong quarterly performance and positive future outlook. The company’s Q2/24 results exceeded expectations in terms of SaaS revenue and EBITDA, despite slightly lower guidance for FY2025 SaaS revenue. This strong performance was highlighted by a record quarter for new Annual Recurring Revenue (ARR) bookings, indicating a robust recovery from previous weaknesses and a growing number of expansion deals.
Additionally, Moschopoulos views the current valuation of Kinaxis as attractive, with the uncertainties surrounding the CEO transition already factored into the stock price. The company’s guidance for FY2025 aligns closely with market expectations, with a slight edge in EBITDA margins. Furthermore, Kinaxis’s strategic focus on its core manufacturing verticals and adjustments in its sales structure are seen as positive steps towards sustained growth, reinforcing the Buy recommendation.
In another report released yesterday, RBC Capital also maintained a Buy rating on the stock with a C$210.00 price target.
KXS’s price has also changed slightly for the past six months – from C$156.740 to C$160.590, which is a 2.46% increase.