Blackline Safety Corp. (TSX:BLN) shares have jumped as much as 60% since Capital Ideas wrote about the company about 18 months ago
Capital Ideas Media | January 21, 2022 | SmallCapPower: Little-known Blackline Safety Corp. (TSX:BLN) is expected to “deliver outsized revenue growth in the near and medium term, with a growing base of recurring services revenue,” according to Canaccord Genuity analyst Doug Taylor, who recently initiated coverage of the stock with a ‘Buy’ rating and $7.50 per share target price.
[Editor’s Note: Shares of Blackline Safety have appreciated as much as 60% since Capital Ideas wrote about the company 18 months ago.]
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Blackline Safety develops and makes gas detection and connected safety solutions, including safety gear workers wear and related cloud services.
“Blackline’s solution is delivered through a line-up of proprietary wearable devices. However, each active unit carries a recurring revenue stream that starts at $30/month. Service tiers range from basic connectivity to outsourced monitoring through Blackline’s proprietary monitoring center. On a last twelve months basis, the company generated ~60% of revenue through recurring services, carrying ~70% gross margins, and ~40% through hardware sales,” Mr. Taylor said.
Indeed, Blackline Safety’s most recently reported quarter (Q2 2020) saw the Company’s recurring service revenue rise 58% to $6.6 million (out of total record revenue of $8.5 million).
The Canaccord Genuity analyst believes the Company’s premium growth and attractive business model warrants a high valuation for BLN stock. Shares of Blackline Safety have generated an average annual investor return of 33% during the past five years.
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