Twitter Facebook LinkedIn YouTube

Alarm Force (TSX: AF) gets $16.00 Target Price from Mackie Research

Video Platform Video Management Video Solutions Video Player

Following AlarmForce Industries’ (TSX:AF) recent quarterly results, analyst Russell Stanley gives the company a 12 month target price of $16.00, a premium of 53% to the $10.50 price on March 29th, the day the report was issued.

Additional Information:

Company: AlarmForce Industries
Website: http://www.alarmforce.com
Stock Symbol: TSX: AF
Date Published: Apr 6, 2016
Transcript: Available

Video Transcript:

I’m Samantha Deutscher for InvestmentPitch Media

Today’s buy recommendation comes from Mackie Research.

Following AlarmForce Industries’ (TSX:AF) recent quarterly results, analyst Russell Stanley gives the company a 12 month target price of $16.00, a premium of 53% to the $10.50 price on March 29th, the day the report was issued.

AlarmForce Industries provides home protection and personal monitoring services nationwide in Canada, as well as in select U.S. markets.

Specific services include security alarm monitoring, personal emergency response monitoring and video surveillance.

With almost 110,000 residential accounts in Canada, it is the 2nd largest service provider in the country, with an approximate 3% market share

The North American residential security monitoring market is a $12 billion annual business.

The current market leader, ADT Corporation, estimates that the industry has 25% market penetration in Canada, leaving signficant room to expand.

Moreover, the rise of home automation is creating new opportunities for subscriber acquisition and cross-selling.

In mid-2015, the Company appointed a new CEO and new CFO, both formerly with divisions of Brookfield Asset Management.

They have reassessed the Company’s U.S. market strategy, outsourced a number of non-core activities to refocus AlarmForce on its core strengths, and are planning to pilot a new dealer channel later this year.

Analyst Russell Stanley stated: “We believe the Company is positioned well to resume organic revenue growth and pursue opportunistic acquisitions.”

For the first quarter of 2016, the company reported recurring monthly revenue of $4.67 million, reflecting an increase of 5%.

The company pays a quarterly dividend of $0.045 per share.

The company currently trades at $10.20, and with 11.6 million shares outstanding, the company is capitalized at $118.2 million.

For more information, please visit the company’s website www.alarmforce.com, contact Chris Lynch at 416-445-2414 or email clynch@alarmforce.com.

For more information about Mackie Research or to obtain the report on AlarmForce contact your nearest Mackie Research office. Their branches are listed on their website at www.mackieresearch.com.

I’m Samantha Deutscher for InvestmentPitch Media