Update shared on16 Aug 2025
Fair value Decreased 7.02%Despite higher consensus revenue growth forecasts for Quarterhill, a rising future P/E ratio appears to have outweighed this improvement, leading to a reduction in the consensus analyst price target from CA$1.98 to CA$1.84.
What's in the News
- Quarterhill secured new international contracts in Djibouti, Thailand, and South Korea, marking its first deployment in Djibouti with a World Bank-funded overweight enforcement system and additional follow-on orders in established Asian markets.
- The company announced a workforce reduction of about 100 positions (15% of headcount), targeting USD 12 million in annualized cost savings, to accelerate sustainable positive Adjusted EBITDA and better align resources with strategic priorities.
- Quarterhill’s back-office technology enabled the successful transition and system acceptance of about one million TxTag user accounts to the Harris County Toll Road Authority, improving operational efficiency and consolidating customer service in Texas.
- David Charron was appointed Chief Financial Officer, bringing extensive experience in global technology companies and public company financial management, with Morgan Demkey returning to his prior operational leadership role.
Valuation Changes
Summary of Valuation Changes for Quarterhill
- The Consensus Analyst Price Target has fallen from CA$1.98 to CA$1.84.
- The Consensus Revenue Growth forecasts for Quarterhill has significantly risen from 7.2% per annum to 9.8% per annum.
- The Future P/E for Quarterhill has significantly risen from 10.61x to 12.77x.
Disclaimer
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