The Wall Street house Maxim Group kicked off coverage of IoT and Artificial Intelligence (AI) group Universal mCloud Corp (CVE:MCLD) with a Buy rating and a price target of C$0.70, thanks to the company’s promising asset management software market for smart building automation.
“MCLD is addressing the asset management software markets for smart building automation, which we estimate is worth around US$1.6 billion (C$2.2 billion) today and will grow to around US$3 billion (C$4.1 billion) over the next 10 years,” wrote Maxim’s Nehal Chokshi and Jack Vander Aarde in a note to investors.
Universal mCloud operates as an IoT connected asset care cloud solution company, providing a range of tools to monitor and analyze equipment health utilizing cloud technology, IoT, and real-time data analytics.
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Maxim analysts pointed out that mCloud’s focus on small- to mid-sized opportunities, channel partnerships, and strong management gave them “confidence that MCLD will become a material player in the industrial asset management market.”
The company’s Asset Circle of Care platform comprises various modules, including AssetCare Cloud, AssetCare Mobile, AssetCare Connect, AssetCare HVAC, AssetCare Wind, and AssetCare FullCare and is used to manage the care and performance of critical assets at various locations.
The company provides its services through AssetCare subscription and is headquartered in Vancouver, with technology and operations centers in San Francisco and Bristol, Pennsylvania.
Maxim analysts initiated coverage with a Buy rating and 12-month price target of C$0.70, which includes a long-term EBITDA margin estimate of 30%, similar to other Software as a service (SaaS) names.
In November, mCloud announced that its revenue almost doubled in the third quarter as the artificial-intelligence and internet of things company added customers. The company said that it expanded existing accounts, invested in technology and identified acquisitions.
Universal mCloud shares were up 3.4% at C$0.30 on Thursday.
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