UPDATE: BWS Financial Initiates Coverage On Avid Technology

BWS Financial initiated coverage on Avid Technology, Inc. (OTC: AVID) with a Buy rating and $20 price target.

Analyst Hamed Khorsand commented that “AVID is a software developer in a market that is tightly knit and whose participants consider AVID the best solution for video editing. AVID has built a competitive moat for itself in video and audio editing that larger competitors have not been able to pierce.”

“At first glance investors might see AVID as an “old tech” software company that has a below industry average operating margin trading on the pink sheets; making the stock an unattractive investment. However, AVID went through an accounting restatement associated with revenue recognition that was finally completed in 2014,” according to Khorsand.

The analyst noted concluded that “AVID is profitable and trades at single digit valuations compared to other SAAS stocks. The stock should receive a higher valuation with the pending up listing to the NASDAQ.”

Avid Technology recently traded at $13.03, up 2.68 percent.