Canaccord Genuity Sticks to Their Hold Rating for EXFO Inc. SV

Wall Street analyst has provided a review for the Consumer Goods company today, but retained the same rating on the stock. EXFO Inc. SV (TSX: EXF) received a Hold rating from Canaccord Genuity’s analyst Robert Young, with a C$3.75 price target.

Young noted:

“EXFO reported FQ3 with an EBITDA miss and lowered its F2018 full year EBITDA guidance by 10% to C$20M. While management remains confident on its F2019 EBITDA guidance of C$30M despite the F2018 reduction, we see a higher degree of risk. We are reiterating our HOLD rating and are reducing our target to US$3.75 (from US$4.50) to reflect reduced estimates and a lower valuation multiple. We have reduced our EBITDA estimates for F2018 ($18.1M from C$21.9M) and F2019 ($26.6M from C$30.0M). We have also reduced our valuation multiple (8x NTM to reflect a higher level of risk associated with the complex Astellia integration and larger system deal push- outs on the protocol side. While we are optimistic on strengthened positioning to benefit from 5G, we prefer to remain on the sidelines on this low-liquidity stock until we have more confidence in the Astellia integration and meeting EBITDA targets.”

According to, Young is ranked #349 out of 4838 analysts.

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Currently, the analyst consensus on EXFO Inc. SV is a Hold with an average price target of C$3.75.

EXFO Inc. SV’s market cap is currently C$257.1M and has a P/E ratio of 0. The company has a Price to Book ratio of 1.04.

EXFO, Inc. engages in the provision of next-generation test, service assurance and analytics solutions for fixed and mobile communications service providers, web-scale operators as well as network equipment manufacturers in the global telecommunications industry.

The company’s shares closed on Wednesday at C$4.40.

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