In a research report released Wednesday, Canaccord analyst Michael Walkley maintained a Buy rating on CalAmp Corp. (NASDAQ:CAMP) with a price target of $26, after the company reported solid fiscal first-quarter results and issued second-quarter guidance that were consistent with Walkley’s estimates.
Walkley wrote, “We believe CalAmp’s Wireless DataCom business is well positioned to drive strong F2016 and F2017 sales and earnings growth driven by ramping sales to Caterpillar, growing insurance telematics sales, ramping international sales, a growing product portfolio, an increasing list of new customer opportunities, and anticipated steady growth of higher-margin recurring revenue sales. Further, we believe CalAmp’s recent low-interest rate convertible offering with $152M in net proceeds provides the company with increased financial flexibility for its M&A strategy focused on accretive acquisitions in targeted IoT verticals.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst T. Michael Walkley has a total average return of 23.3% and a 70.0% success rate. Walkley has a -5.2% average return when recommending CAMP, and is ranked #4 out of 3688 analysts.