Quisitive Technology Solutions Inc’s (TSXV:QUIS) business is tied directly to providing professional services implementing Microsoft cloud solutions
Capital Ideas Media | July 15, 2020 | SmallCapPower: Beacon Securities and Clarus Securities have both started analyst coverage of Quisitive Technology Solutions Inc. (TSXV:QUIS).
(Originally published on Capital Ideas Media on May 26, 2020)
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Quisitive, as described by Beacon, is a Microsoft solutions provider that helps enterprise organizations move, operate and innovate in the Microsoft cloud.
This is a company we first featured in the Digest in late October, 2018, based on new coverage from Echelon Wealth Partners, which gave the stock a projected return of nearly 330%.
Here we are 18 months later and QUIS has gained about 250%. Close enough.
Now the analysts at Beacon and Clarus believe Quisitive can build on its recent success.
Beacon has started QUIS with a “Buy” rating and price target of $1.20, while Clarus begins with a “Speculative Buy” and a $1.25 target.
Here are some highlights from Beacon’s report: Not Your Father’s Consulting Business
Quisitive’s business is tied directly to providing professional services implementing Microsoft cloud solutions (which generates both recurring and non-recurring revenues, currently split ~78% / 22%) and also from licensing proprietary software built on Microsoft’s technology stack.
The partner ecosystem is very important to Microsoft as 95% of its business is generated through this 40-year old, partner-led ecosystem. Quisitive is a strong member of this network as evidenced by its Microsoft Country Partner of the Year award for the U.S. in 2019.
The company also has full cloud capability, which places it in a select 5% of Microsoft partners. It also has Microsoft NSI (National Systems Integrator) status, which places it in the top 0.01% of Microsoft partners worldwide.
Aside from organic growth in its core consulting business (expected in the ~15% y/y range), Quisitive also has a focused M&A strategy that targets geographic expansion, diversification of Microsoft service capabilities, service capacity, and recurring revenue platforms. To date, the company has completed to transformative acquisitions, which have brought scale, IP, and recurring revenues.
Aside from its consulting expertise, Quisitive has also invested in proprietary SaaS-based solutions, which leverage the Microsoft cloud and emerging technologies.
This is highlighted by products such as CRG emPerform and LedgerPay, the latter of which we believe has the potential to disrupt the multi-billion dollar payment processing and data analytics industry. LedgerPay was only recently launched and has already generated good revenue and partnership traction.
We view large deals, M&A and a better-than-expected ramp up of LedgerPay bookings as representing upside to our estimates and target price.
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