Canaccord Genuity Thinks Real Matters Inc’s Stock is Going to Recover

By Jason Carr

In a latest note to investors, a research analyst has provided a rating update for the NA sector company, Real Matters Inc (TSX: REAL). Canaccord Genuity’s analyst Robert Young reiterates their Buy rating on the shares today.

Young commented:

“We see limited impact to our thesis on Real Matters, which hinges on large mortgage lender penetration. We believe that Real Matters can grow its appraisal business quickly on the back of recent large Tier-1 lender wins and we see a second leg of growth forming from a nascent expansion into the similar, but larger Title & Closing market. We rate Real Matters a BUY with a C$16.00 target price based on DCF analysis. Investment highlights We see limited impact to our thesis. Corelogic expects the Mercury Network to accelerate its penetration of small and medium sized customers and highlights its broad range of valuation-related data and analytics. Corelogic will continue to use the technology acquired from FNC to address its larger customers. This suggests to us limited impact to share growth in the Tier-1 and Tier-2 space which is the driver of Real Matters growth in our view. We also note that CoreLogic has been leveraging Mercury technology as part of its appraisal workflow since at least 2011, initially to format appraisal submissions to meet GSE requirements under the Uniform Mortgage Data Program, indicating that the important competitive technologies are likely already being used by Corelogic.”

According to TipRanks.com, Young is a 5-star analyst with an average return of 19.0% and a 77.7% success rate. Young covers the Technology sector, focusing on stocks such as Dragonwave Inc, CounterPath, and Wi-Lan Inc.

Currently, the analyst consensus on Real Matters Inc is Moderate Buy and the average price target is C$15.75, representing a 29.6% upside.

In a report issued on May 31, TD Securities also reiterated a Buy rating on the stock with a C$15.50 price target.

The company has a one year high of C$15 and a one year low of C$12.05. Currently, Real Matters Inc has an average volume of 332.6K.

Real Matters, Inc. operates as a cloud-based real estate technology platform. It offers collateral valuation, risk management, appraisals, insurance inspection, title search, mortgage closing, and data analytic services. The company was founded by Michael A. Johnston in 2004 and is headquartered in Markham, Canada.

The company’s shares closed last Tuesday at $12.15, close to its 52-week low of $12.05.