KXSCF - Kinaxis: Increasing Exposure To Software-As-A-Service Is Beneficial
Investment Thesis
Kinaxis (KXSCF) (TSX:KXS) delivered a good Q2 2019 with solid revenue growth. Its increase in operating expenses should be perceived positively as the company continues to add more talent to drive higher sales. The company's increasing exposure to Software-as-a-Service revenue is beneficial as SaaS revenues are recurring and more stable than one-time license revenues. Its shares are currently trading at a discount to its historical average and to its peers. We believe any weakness will provide a good buying opportunity for investors with a long-term investment horizon.
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