Research Alert: CFRA Keeps Strong Buy View On Shares Of Kinaxis Inc. On Ebitda Margin Showing
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We maintain our Strong Buy (5-STARS) rating on KXS and increase our target price to CAD180 from CAD165. We maintain our earnings multiple of 28x and EBITDA multiple of 18x on FY 27 projections. We increase our FY 26 to $4.85 from $4.55 and our FY 27 to $5.02 from $4.77. Adjusted EBITDA margin expanded to 32% from 25% in the prior-year quarter, a 700-bp increase driven by gross margin expansion to 69% and operating expense leverage. Annual recurring revenue grew 20% to $447M, accelerating from 14% growth a year ago, as the company posted record Q1 new business bookings from large customer wins and existing account expansions. The combination of revenue growth acceleration and margin expansion drove profit to $29.4M (+85% Y/Y) with diluted EPS of $1.04 compared to $0.55 in Q1 2025. The cash flow story is unfolding as Q1 saw cash flows spent on buybacks total 63% of FY 25's total as shares begin to be more meaningfully reduced.
