The Globe and Mail reports in its Wednesday, Sept. 16, edition that RBC Dominion Securities analyst James McGarragle rates Kraken Robotics "outperform" in new coverage. The Globe's David Leeder writes in the Eye On Equities column that Mr. McGarragle targets the marine technology company's shares at $6. Analysts on average target the shares at $9.58. Mr. McGarragle believes Kraken Robotics' $615-million acquisition of Covelya Group transforms it into a full-subsystem undersea technology provider, enhancing scale and customer loyalty. Mr. McGarragle says in a note: "Combined with structural defence and commercial tailwinds driving strong growth, we see a compelling path to operating leverage and EBITDA margin expansion through FY28. Key is that our conservative earnings forecast and target multiple point to an attractive entry point at current levels, with further upside potential as integration progress materializes. While Kraken previously supplied one or two components of an underwater vehicle, the combined company now provides the majority of a vehicle's subsystems, creating substantial switching costs; replacing a multisubsystem vendor requires costly retesting and reintegration."