Initiating Coverage on Renoworks Software with a Buy Recommendation and a $1.52 Price Target
Renoworks Software Inc. (CA: RW – $0.46 & US: ROWKF – $0.39) is an established B2B software-as-a-service company that offers a web-based visualization platform for homeowners and contractors to plan, design and visualize home repair and remodeling projects before committing to purchases and construction. The Renoworks platform includes over 350 building products brands and counts 3.2 million unique users per year.
Renoworks markets its platform primarily to building product manufacturers (BPMs) in the U.S. and Canada as an all-in-one custom-branded digital marketing tool that engages homeowners, nurtures them toward a purchase decision, and provides the manufacturer with buyer intent data into the entire customer journey. Renoworks also offers visualization solutions to contractors that help them better engage with homeowners and enhances their workflow with remote measurements, 3D models and other quoting solutions.
Both for fiscal year 2020 and the first quarter of 2021, the Company achieved record financials. For the first quarter of 2021, ended March 31, Renoworks reached sales of $1.42 million, versus $1.12 million a year ago, an increase of 27%. At the same time, the net loss decreased from $71 thousand in Q1 2020 to $43 thousand in Q1 2021.
Today, the Renoworks Visualization Platform, and its world-class service stand as the benchmark by which others in the home visualization industry compare.
We initiate coverage of Renoworks Software Inc. with a buy recommendation and a price target of $1.52, which is 230% above today’s stock price.
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