Absolute Software's Growth Trajectory Unlikely To Be Affected By CRO Departure, Analyst Says

Needham analyst Scott Berg reiterated a Buy on Absolute Software Corp ABST and a $14 price target.
In what is quickly becoming a theme in Enterprise Software, Absolute's Chief Revenue Officer, Matthew Schonfeld, resigned from the company to pursue a role as President of a pre-IPO company.
ABST promoted EVP, Channel, and Business Development Mark Grace to the role of CRO. The changes are effective November 4.
While Berg always views this type of change through a lens of scrutiny, Grace has been with ABST for more than eight years and has had a significant influence over GTM changes over the last 12 months. The analyst views this should position Grace well for the sales leadership position.
His ABST thesis centers around a significant change to the company's channel strategy, which Grace, in his role, has led and should limit concern with this leadership change.
His Absolute Software investment thesis calls for improving GTM strategies and new product innovations to result in more sustainable and higher revenue growth over the next several years.
Coupled with a more profitable model than during recent years, he looks for ABST's EV/sales multiple to widen as its new strategies are better appreciated.
Price Action: ABST shares traded lower by 0.27% at $11.02 on the last check Wednesday.