Information Services Corporation poised for a strong 2024, analysts say
Published: 17:56 18 Jan 2024 GMT
Information Services Corporation (TSX:ISV)'s share price is seen rewarding investors with an almost 40% return over the next 12 months by analysts at Acumen Capital.
The analysts see the ‘Buy’-rated stock reaching C$31.75, up from its current share price of C$23.49.
“Operational results were generally as expected in 2023 with registry transactions moderating from the elevated levels seen during Covid but remaining well ahead of the 10-year average,” they wrote in a note to clients.
They believe the leader in registry and information management services for public data and records’ position in the Canadian province of Saskatchewan is significant.
The company in July announced a 20-year MSA extension agreement with the province which the analysts noted provides clarity for the Registry division through to 2053.
“With Saskatchewan poised for continued outperformance driven by a strong labor market and record population growth, we expect a strong year for Information Services Corporation (TSX:ISV) in 2024,” the analysts wrote.
They also highlighted that the company started to see green shoots in its Technology Solutions segment with the announcement of several new contracts throughout the year.
They project a free cash flow yield of 13% in 2023 and 14% in 2024.
