AVA Rated BUY with $0.22 Price Target

Last time I published an analyst report here at HC it got struck down. Apparently broker research is not allowed, I'm not sure why.

However it does seem relevant that yesterday Canaccord Genuity published a new update on AVA and today the price has shot up. Without acknowledging this report we're forced to speculate about the employee share policy as driving the price.

I will list some bullet points and see if this is allowed to stay up.

They reiterated their BUY rating and 22c price target

Positive news of Q1 revs $9.8m (up 18% over pcp) and first ever quarterly EBITDA profit of $1.2m
Q2 guidance $9m, HY $19m revs

$1m EBITDA from technology division
$0.2m from services division

Estimate $6.3m EBITDA for full year

Aura AI-2 revs up 272%
1900 existing Aura systems in the field which may be upgraded

Aura IQ conveyor belt product $40m pipeline

$1m cost savings expected from BQT consolidation to Auckland
Addressable spend of clients in services division now $90m

First tranche of orders for Indian MOD has been received - 600 systems, 25% of the total order of approx $17m. License fee revenue from this is expected to come in late in Q2 with the balance in the second half of the financial year. Canaccord have not factored this into their valuation given past delays.