eResearch is pleased to publish an Update Equity Research Report on DATA Communications Management Corp. (TSX: DCM | OTC: DCMDF) after it acquired Zavy Limited.
We are maintaining a Buy rating and our one-year price target of $6.55.
You can download our 10-page Equity Research Report by clicking on the following link: eR-DCM-2024_11_09_UR-Zavy-Acq_FINAL
Company Overview
DCM is a Canadian-based provider of marketing and business communication solutions to companies in North America. Its technology-enabled content and workflow management capabilities solve the complex branding, communications, logistics, and regulatory requirements of leading enterprises so its customers can accomplish more in less time. Its services include printing, content management, digital asset management (DAM), labels & asset tracking, location-specific marketing, social media analytics, and multimedia campaign management.
Report Highlights
Acquisition Update:
- Strategic Acquisition: Earlier this week, DCM acquired New Zealand-based Zavy Limited, a leader in social media analytics, to expand its marketing technology (MarTech) offerings. This acquisition will help DCM broaden its digital portfolio and introduces Zavy’s solutions to the North American market.
- Advanced Social Media Insights: Zavy’s platform offers tools for social media benchmarking, AI-driven insights, content analysis, and workflow management across popular platforms like Facebook and Instagram. These capabilities allow brands to gain deeper insights into engagement and customer sentiment, facilitating more strategic, data-driven marketing.
- Alignment with DCM’s Strategy: The acquisition aligns with DCM’s shift from a print-focused company to a digital solutions provider. Zavy’s social media analytics tools complement DCM’s recent moves toward digital workflow and asset management solutions, solidifying its position in the growing MarTech space.
- Market Trends & Opportunities: The social media analytics market is projected to grow significantly, presenting DCM with new revenue opportunities, especially through cross-selling.
- SMB Accessibility: Zavy’s flexible pricing makes social media analytics accessible to small and medium-sized businesses (SMBs), enabling DCM to serve a wider range of clients effectively.
Financial Analysis & Valuation:
- We estimate an equal-weighted price target of $6.53 based on a DCF valuation ($9.40/share), a Revenue Multiple valuation ($5.70/share), and an EBITDA Multiple valuation ($4.50/share).
We maintain a Buy rating and a one-year price target of $6.55.
You can download our 10-page Equity Research Report by clicking on the following link: eR-DCM-2024_11_09_UR-Zavy-Acq_FINAL
FIGURE 1: One-Year Stock Chart
Other DCM Research Reports over the last year:
- Update Report (August 8, 2024): DCM Navigates Integration Challenges with Strategic Focus on H2/2024 Revenue Growth and Margin Improvements
- Video (July 22, 2024): Analyst Chris Thompson Discusses eResearch’s Latest Research Report on DCM and its Q1/2024 Financial Results
- Update Report (May 16, 2024): DCM Reports Strong First Quarter Results as Revenue Grows, Margins Strengthen, and Debt Reduction Continues
- Update Report (March 25, 2024): Record Revenue & EBITDA Growth Highlight MCC Acquisition Synergies and Improving Margins
- Update Report (March 1, 2024): MediaValet Acquisition Multiple Bodes Well for DCM’s Valuation as its Pays Down Debt and Focuses on Tech Strategy
- Update Report (November 13, 2023): Revenue & EBITDA Growth Continues to Benefit from MCC Acquisition; Deal Synergies Now Targeting up to $35M
Notes: All numbers in CAD unless otherwise stated. The author of this report, and employees, consultants, and family of eResearch may own stock positions in companies mentioned in this article and may have been paid by a company mentioned in the article or research report. eResearch offers no representations or warranties that any of the information contained in this article is accurate or complete. Articles on eresearch.com are provided for general informational purposes only and do not constitute financial, investment, tax, legal, or accounting advice nor does it constitute an offer or solicitation to buy or sell any securities referred to. Individual circumstances and current events are critical to sound investment planning; anyone wishing to act on this information should consult with a financial advisor. The article may contain “forward-looking statements” within the meaning of applicable securities legislation. Forward-looking statements are based on the opinions and assumptions of the Company’s management as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein. Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Please read eResearch’s full disclaimer.
