Tucows Inc. (TC:TSX) Analysts rate as a Buy, $72.50 target

STA Research
by: STA Research

Based on the Tucows Inc. stock (stock tc) forecasts from 2 analysts, the average analyst target price for Tucows Inc. (stock tc) is $72.50 over the next 12 months. Tucows Inc.’s average analyst rating is Buy. Stock Target Advisor’s stock analysis of Tucows Inc. (stock tc) is Neutral, based on 5 positive and 5 negative signals. At the last closing, Tucows Inc.’s stock price was CAD 61.92. Tucows Inc.’s stock price has changed by +5.05% over the past week, -1.03% over the past month and -38.44% over the last year.

STA Research just assigned a Buy rating on the stock, with a 12 month target price of $75 per share.

In Canada, the US, and Europe, Tucows Inc. (stock tc) offers network access, domain name registration, email, mobile phone, and other Internet services. Fiber Internet Services, Mobile Services, and Domain Services make up its three operating segments. In August 2001, the business changed its name from Infonautics, Inc. to Tucows Inc. The corporate headquarters of Canadian company Tucows Inc. are in Toronto.

 

What we like:

Superior risk-adjusted returns

This stock has performed well, on a risk-adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers (for a hold period of at least 12 months) and are in the top quartile. Although stability is good, also keep in mind it can limit returns.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

 

What we don’t like:

Overpriced compared to earnings

The stock is trading high compared to its peers on a price-to-earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers’ median on a price-to-book value basis.

Overpriced on a cash flow basis

The stock is trading high compared to its peers on a price-to-cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on a free cash flow basis

The stock is trading high compared to its peers on a price-to-free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

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