In a research report released Monday, Canaccord analyst Michael Walkley reiterated a Buy rating on shares of Sierra Wireless, Inc. (USA) (NASDAQ:SWIR) with a $38 price target, after hosting an investor meeting with Jason Cohenour, CEO of Sierra Wireless at the CTIA show in Las Vegas.
Walkley observed, “Management highlighted its strong business pipeline positioning the company to drive sustained double digit revenue growth along with elaborating on its device to cloud strategy. Further, management highlighted its recent changes in divisional structure to improve product innovation for launching new products for its cellular gateway and router products.”
The analyst added, “We maintain our belief Sierra Wireless is well positioned to benefit from strong long-term industry growth trends in its industry-leading OEM solutions business. In addition, following the recently closed Maingate and Accel Networks acquisitions, we anticipate continued strong growth for Sierra Wireless’s higher margin Enterprise Solutions division and anticipate the company will remain acquisitive to drive higher-margin sales growth focused in areas that bolster its Enterprise solutions business.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Michael Walkley has a total average return of 17.6% and a 59.3% success rate. Walkley has a 25.2% average return when recommending SWIR, and is ranked #20 out of 3755 analysts.
Out of the 5 analysts polled by TipRanks, 4 rate Sierra Wireless stock a Hold, while 1 rates the stock a Buy. With a return potential of 54.3%, the stock’s consensus target price stands at $33.75.