In a research report released Monday, Canaccord analyst Michael Walkley reiterated a Buy rating on shares of CalAmp Corp. (NASDAQ:CAMP) with a price target of $26, after hosting an investor meeting with Michael Burdiek, President and CEO of CalAmp, at the CTIA show in Las Vegas.
Walkley noted, “Given the quiet period ahead of August quarter earnings, we discussed management’s longer-term strategic initiatives and new products announced at CTIA. Management emphasized its strong longer-term business opportunities, highlighting how it has an installed base of over 5M connected devices around the world. 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.”
“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,” the analyst added.
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 -14.1% average return when recommending CAMP, and is ranked #20 out of 3755 analysts.
All the 5 analysts polled by TipRanks rate Calamp stock a Buy. With a return potential of 58%, the stock’s consensus target price stands at $25.50.