Emerge Commerce Sees Canaccord Reiterate $1.20 Price Target

On November 29th, Emerge Commerce (TSXV: ECOM) announced its third quarter financial results. The company reported quarterly revenues of $6.1 million, up from $2.2 million a year ago. Additionally, the company reported gross merchandise sales of $9.2 million, up from $7.74 million last year. Adjusted EBITDA dropped from $0.06 million last year to negative $0.5 million this quarter. The company reported a net loss of $1.01 million, or earnings per share of negative $0.01.

Emerge Commerce currently only has 2 analysts covering the stock with an average 12-month price target of C$1.73, or a 158% upside to the current stock price. Out of the 2 analysts, 1 has a strong buy rating and the other has a buy rating. The street high sits at C$2.25 from Raymond James while the lowest comes in at C$1.20.

In Canaccord’s third quarter review, they reiterate their buy rating and C$1.20 12-month price target, saying that the company is showing positive signs to close out the year, but the execution is the key for 2022.

For the results, the company came slightly below Canaccord’s revenue estimates of C$6.8 million while adjusted EBITDA came exactly in line with their estimate. Canaccord says that proforma, the company saw revenues decline 15%, primarily due to conditions impacting Underpar. Though, management noted that Underpar has since seen a recovery during the fourth quarter.

As for the dip back into negative adjusted EBITDA, Canaccord says this is primarily due to increased investments “to bolster the team ahead of key acquisitions like BattlBox and WSP.” As for the companies balance sheet, Canaccord believes that Emerge will exit 2021 with $18.6 million in net debt and expect a few deferred payments, retention payments and earnouts happening during 2022. So they remain focused on the companies balance sheet health.

Canaccord provided some operating outlook for 2022, saying that management noted Underpar saw revenues recover during the fourth quarter and that Black Friday saw gross merchandise sales up roughly 3 times year over year. This coupled with new truLOCAL divisions driving new initiatives and Carnivore Club providing potential cross-selling synergies. Because of this Canaccord expects better organic returns in 2022.

Below you can see Canaccord’s updated 2021 and 2022 estimates.


Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Silver’s Finally Breaking the System | Keith Neumeyer – First Majestic

The Best News for Gold Was the Drop! – Peter Grandich

McEwen Copper: The Los Azules Feasibility Study

Recommended

Goliath Resources Drills 10.72 g/t Gold Over 7.83 Metres At Surebet

Steadright Enters MOU To Acquire Historic Goundafa Polymetallic Mine In Morocco

Related News

Amazon: BMO Anticipates Revenue To Hit High End Of Guidance

Amazon.com Inc (NASDAQ: AMZN) announced that it will be reporting its third quarter results on...

Saturday, October 23, 2021, 12:53:00 PM

Lundin Mining: BMO Lowers Targets, Rating Based On Expected Lackluster News Flow

On August 19, BMO Capital Markets lowered their 12-month price target on Lundin Mining Corporation...

Friday, August 20, 2021, 11:21:00 AM

BMO Lowers Aritzia’s Price Target, Points To Inflation Headwinds

Last week Aritzia (TSX: ATZ) reported their fiscal fourth quarter ending February 26 results. The...

Tuesday, May 10, 2022, 03:02:00 PM

Raymond James: Village Farms’ Revenue Miss Is An “Artifact of Consolidation”

Yesterday, Village Farms (TSX: VFF) (NASDAQ: VFF) reported fourth quarter and year-end earnings. The company...

Wednesday, March 17, 2021, 04:11:00 PM

Tyson Foods: BMO Lifts Price Target To $115 After Strong Q1 Results

On February 7th, Tyson Foods (NYSE: TSN) reported their fiscal first quarter results for the...

Thursday, February 10, 2022, 02:44:00 PM