Q: Where do you see the stock valuation of Sangoma going in 2025? At $10 it trades at 1xsales or 5.5X EBITDA on Fiscal 2025E.
5i Research Answer:
The stock has staged a huge recovery, up more than 130% in 2024. It is still expected to lose 6 cents per share in fiscal 2025, rising to 11 cents profit in fiscal 2026 (year end June). It is cheap on most valuation metrics except for Price/earnings. Debt is coming down which could boost investor confidence. If it can execute on expected growth, we could see it work towards $13 (average target $11.79). We would not expect another 100% year here.