Market Overview

DA Davidson On Park City Group: 'The Time For Execution Is Now'

Share:

DA Davidson analysts recently hosted investor meetings with Park City Group, Inc. (NASDAQ: PCYG) CFO John Merrill and the conversations emphasized the case for being bullish on the stock.

The Analyst

DA Davidson's Tom Forte maintains a Buy rating on Park City Group with an unchanged $11.50 price target.

The Thesis

Merrill served as Park City's CFO from 2006 to 2010 and returned as senior vice president of finance in 2018 before being named CFO in May, Forte wrote in a note. The executive highlighted during the conversations his return to the SaaS company motivated by its opportunities in food safety compliance, supply chain and the MarketPlace platform.

Merrill also explained the 23,000 suppliers that already use Park City's platform represents a total addressable market of $55 million in annual revenue. By comparison, the company end fiscal 2018 with $22 million in sales. As such, Forte said a "simple fine tuning" of the existing go-to-market should alone notably improve sales.

Other potential initiatives to generate growth includes cross-selling its portfolio of products to existing customers. The company has an opportunity to better help retailers maximize sales of seasonal items by connecting retailers with compliant vendors. Specifically, the MarketPlace's core purpose enables retailers to sell short-term and high inventory/high demand items.

Bottom line, Forte said conversations with the CFO "increased our conviction" in Park City's ability to grow its business.

Price Action

Shares of Park City Group traded around $5.51 Monday afternoon.

Related Links:

Mid-Morning Market Update: Markets Edge Higher; Eldorado To Buy Caesars For $17.3B

5 Stocks To Watch For June 24, 2019

Latest Ratings for PCYG

DateFirmActionFromTo
Sep 2017Initiates Coverage OnBuy
Aug 2017Initiates Coverage OnBuy
Jul 2015AssumesBuy

View More Analyst Ratings for PCYG
View the Latest Analyst Ratings

Posted-In: DA Davidson retailers SAAS Tom ForteAnalyst Color Analyst Ratings

 

Related Articles (PCYG)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
NCMIBenchmarkMaintains12.0
FWONAFBN SecuritiesDowngrades
BXCitiDowngrades52.0
TRVBank of AmericaDowngrades
PSTGCross ResearchUpgrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Texas Sends Another 1,000 National Guard Troops To Mexican Border In Response To Migrant Crisis

A European Landscape: The 21st Century's Women In Cannabis - And An Event For Us