Globe says Tio Networks seen as rare TSX-V winner
The Globe and Mail reports in its Wednesday edition that Tio Networks ($1.94), a cloud-based bill payment company in Vancouver, is gaining increased attention after doubling its market value over the last six months. The Globe's Brenda Bouw writes that Tio handles mostly U.S. telecom and utility company payments through kiosks, in stores and across mobile and the Web.
In July, Tio announced the $31-million (U.S.) purchase of consumer retail bill payment company Softgate Systems Inc., beefing up its presence in the northeastern United States.
All seven analysts who cover the stock have a "buy" recommendation and a consensus price target over the next year of $2.56. Tio is also expected to gain the attention of more investors now that it has surpassed $100-million in market capitalization.
If the Softgate deal closes in the new year as expected, the TSX Venture Exchange-listed company is also expected to seek a listing on the main Toronto market.
"This is a name that will get more and more on the radar screen of investors," said PI Financial analyst David Kwan. He recently increased his target to $3 from $2.70 after Tio beat analyst expectations in its first quarter ended Oct. 31.
