On March 15th, Scotiabank analyst Paul Steep lowered Enghouse Systems’ (TSX:ENGH) price target to $69 from $71 and kept a “ Sector Perform” rating on the stock. EMGH stock’s previous close was at $61.41 which shows it was trading at a discount of 12.35% to Scotiabank estimates.
Later in the day CIBC analyst Stephanie Price lowered the price target on Enghouse Systems to $80 from $84 keeping an “outperform” rating on the tech stock.
ENGH has been valued at a market cap of $3.38 billion and an enterprise value of $3.21 billion stating that the company has a net liquidity of $0.17 billion.
Quarter 4 Results
Enghouse is a company that provides enterprise software solutions focusing on remote work, visual computing and communications for next-generation software-defined networks. The company released its Q4 results and reported revenue of $119.1 million, an increase of 7.6% from the comparative period in the prior year.
Cash flows from operating activities excluding changes in working capital increased 18.6% to $41.7 million, closing the quarter with $230.4 million in cash, cash equivalents, and short-term investments. The company’s adjusted EBITDA margins increased from 31.9% to 37.4% as Enghouse continues to realize efficiencies related to increased scale after quickly integrating acquisitions and reduced travel costs.
ENGH expects to increase cash flow in the coming year and therefore declared a quarterly dividend of $0.16 per common share, an increase of 18%. This indicates a forward dividend yield of 0.88% for ENGH stock.
Analysts covering ENGH stock have an average 12- month price target of $75.40. ENGH revenues are expected to increase 1.5% to $511.13 million in 2021 and earnings are forecasted to fall by 0.6% to $1.76 per share.