The Globe and Mail reports in its Wednesday, Sept. 11, edition that Acumen Capital analyst Nick Corcoran began new coverage on H2O Innovation with a "buy" rating. The Globe's David Leeder writes in the Eye On Equities column that Mr. Corcoran set a share target of $2, which is a dime ahead of the consensus. Mr. Corcoran says H2O Innovation on schedule to reach its three- to five-year goal of $250-million in revenue and a 10-per-cent earnings before interest, taxes, depreciation and amortization margin. In justifying his bullish stance on H2O's future, he emphasizes the "successful" growth of its backlog from $36.5-million in the fourth quarter of 2015 to $138.7-million in the third quarter of 2019. He notes that H2O has a "strong" record of accretive acquisitions. He expects margins will expand through "a focus on higher margin specialty products, higher margin projects (wastewater and industrial over water and municipal), and increasing recurring revenue. We believe catalysts for the story include the Q4/FY19 results on Sept. 25 (before market open), additional operations and maintenance contracts wins, and acquisitions. HEO is the only pure play water treatment company on the TSX or TSX Venture."
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