Enwave Corp, the Services sector company, was revisited by a Wall Street analyst today. Analyst Noel Atkinson from Clarus reiterated a Buy rating on the stock and has a C$0.80 price target.
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Noel Atkinson has given his Buy rating due to a combination of factors, primarily driven by Enwave Corp’s impressive financial performance in the recent quarter. The company reported a significant increase in revenue and Adjusted EBITDA, marking the strongest quarter since at least 2021. This was largely due to the commissioning of several machines and the resale of a refurbished system, which exceeded expectations.
Additionally, Enwave’s gross margin was notably higher than anticipated, supported by efficient cost management despite an expanded global sales team. The company’s management has set ambitious sales goals for the upcoming fiscal year, which, combined with recent order activity, has led to an optimistic outlook for future growth. The expectation of increased system sales and royalty revenues suggests a potential upward re-rating of Enwave’s shares, justifying the Buy rating and the price target of $0.80 per share.