Canaccord lifts Pivotree stock rating to Spec. Buy, target to Cdn$1.75

On Thursday, Canaccord Genuity analysts upgraded Pivotree (PVT:CN) stock from Hold to Speculative Buy and raised the price target to Cdn$1.75, up from the previous Cdn$1.50. This change follows Pivotree’s Q1 results, which exceeded expectations in both revenue and earnings, thanks to effective cost reduction strategies.

Pivotree has acknowledged potential impacts from tariffs, which have been a topic of discussion with customers. However, the exposure is limited to a select group of clients in particular end markets, such as seasonal retailers with offshore manufacturing. An internal review by the company identified approximately 10 customers with significant tariff exposure, but only two to three of these pose a material risk, with just one reporting a project delay.

The company’s diverse market presence has shown resilience, especially in the industrial manufacturing sector. Canaccord Genuity highlighted the positive trend in MIPS (Managed Infrastructure and Professional Services) bookings, which have seen an 85% year-over-year increase. This growth is anticipated to contribute to the company’s expansion through fiscal years 2026 and 2027.

Pivotree’s transition away from legacy LMS (Learning Management System) revenues is proceeding as anticipated, with a more rapid decline expected after the recent divestiture of the WMS (Warehouse Management System) business. Despite slower growth in MIPS and PS (Professional Services) revenue in the past quarters, Canaccord Genuity foresees a potential rebound for these segments in the second half of 2025.

The upgrade and new price target reflect Canaccord Genuity’s revised estimates based on the company’s performance and outlook. The analysts have expressed a positive view of Pivotree’s future growth potential, supported by strong MIPS bookings and a manageable impact from tariffs on its customer base.

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