EMERGE Commerce Ltd. (TSXV:ECOM) has a pipeline of potential acquisition targets that would combine for about $58 million in EBITDA, says one analyst
Capital Ideas Media | June 29, 2021 | SmallCapPower: Recent tech stock selling has created some appealing buying opportunities, especially among the more speculative names.
Subscribers with a strong stomach for risk might want to consider shares of EMERGE Commerce Ltd. (TSXV:ECOM).
EMERGE acquires and operates direct-to-consumer (D2C) North American eCommerce businesses in niche verticals, such as groceries and golf, that either are underserved or have a unique way of operating. Its online brands include TruLocal, WagJag.com, and JustGolfStuff.ca.
ECOM shares are down more than 43% year to date (to its current price of $0.99), even after the Company reported a 121% year-over-year increase in its 2020 revenue to $9.2 million, while swinging to positive EBITDA of $0.8 million for the year from negative $0.6 million in 2019.
Raymond James analyst Steven Li, who has an “Outperform” rating and a target price of $2.75 per share on EMERGE, said he expects the Company’s first-quarter 2021 financial results to look “good,” partly due to its TruLOCAL premium meat subscription service that achieved growth of more than 116% year over year with continued profitability in February.
He also noted that EMERGE’s pipeline of potential acquisition targets would combine for about $58 million in EBITDA.
“With over $20 million cash (after the $12.1 million private placement), we believe ECOM has plenty of firepower to advance its acquisition pipeline in 2021,” Mr. Li said.
The Raymond James analyst is calling for EMERGE to generate 2021 and 2022 revenue of $33 million and $38 million, respectively, and 2021 and 2022 EBITDA of $1 million and $2 million, respectively.
To read our full disclosure, please click on the button below:
The Content contained on this page (including any facts, views, opinions, recommendations, description of, or references to, products or securities) made available by SmallCapPower/Ubika Research is for information purposes only and is not tailored to the needs or circumstances of any particular person. Any mention of a particular security is merely a general discussion of the merits and risks associated there with and is not to be used or construed as an offer to sell, a solicitation of an offer to buy, or an endorsement, recommendation, or sponsorship of any entity or security by SmallCapPower/Ubika Research. The Reader should apply his/her own judgment in making any use of any Content, including, without limitation, the use of any information contained therein as the basis for any conclusions. The Reader bears responsibility for his/her own investment research and decisions. Before making any investment decision, it is strongly recommended that you seek outside advice from a qualified investment advisor. SmallCapPower/Ubika Research does not provide or guarantee any financial, legal, tax, or accounting advice or advice regarding the suitability, profitability, or potential value of any particular investment, security, or information source. Ubika and/or its affiliates and/or their respective officers, directors or employees may from time to time acquire, hold or sell securities and/or commodities and/or commodity futures contracts in certain underlying companies mentioned in this site and which may also be clients of Ubika’s affiliates. In such instances, Ubika and/or its affiliates and/or their respective officers, directors or employees will use all reasonable efforts to avoid engaging in activities that would lead to conflicts of interest and Ubika and/or its affiliates will use all reasonable efforts to comply with conflicts of interest disclosures and regulations to minimize the conflict.
 has a pipeline of potential acquisition targets that would combine for about $58 million in EBITDA, says one analyst.){kind=link}