Haivision Systems price target cut at Paradigm

Following the company’s first quarter results, Paradigm Capital analyst Daniel Rosenberg has cut his price target on Haivision Systems (Haivision Systems Stock Quote, Chart, News, Analysts, Financials TSX:HAI).

On March 13, HAI reported its Q1, 2025 results. The company posted Adjusted EBITDA of $400,000 on revenue of $28.2-million, down $6.4-million, year-over-year.

“Our transition from the systems integrator model to that of a manufacturer in the control rooms space is complete,” CEO Mirko Wicha said. “With the recent increase in control room business, together with the U.S. Navy production contract kicking into gear, we expect our second half revenue to be compelling.”

The analyst summarized the development.

“Haivision reported Q1 results that continued to be impacted by government spending delays,” he wrote. “Recall, the company saw a delay in government order volumes last quarter as
well. Management is more optimistic for the coming quarters and believes top-line contractions have troughed in Q1. The company expects to return to double-digit growth in FY26, supported by new product launches and its large Navy contract.”

In a research update to clients March 16, Rosenberg reiterated his “Buy” rating but cut his price target on HAI from $5.75 to $5.25, implying a return of 20% at the time of publication, including dividends.

The analyst thinks the company will post Adjusted EBITDA of $11.3-million on revenue of $125.1-million in fiscal 2025. He expects those numbersd will improve to Adjusted EBITDA of $18.4-million on revenue of $130.5-million in fiscal 2026.

“Management expects revenue growth to recover in H2 and accelerate to double-digit growth in FY26. Underscoring management’s outlook is the introduction of several new 5G transmitter products and the ramp-up of the U.S. navy contract, all slated for the second half this year,” Rosenberg added. “The company is also seeing increased momentum in the global defense sector and expects to have a larger footprint in this space. On tariffs, management noted that it has taken active measures to mitigate against potential threats but has experienced some operational complexities. It remains confident in being able to optimize its supply chain process.”