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Canaccord Maintains Hold On Echelon Following 4Q14 Results


Canaccord Genuity analyst John Quealy came out with a research note on Echelon Corporation (NASDAQ:ELON), following the company’s fourth-quarter results, posting revenues/GAAP EPS of $9.6M/$(0.06) vs. Canaccord’s $9.0M/ $(0.07) estimates and the Street at $9.1M/$(0.08).

The analyst maintained a Hold rating on the stock with a price target of $1.75, which represents a potential upside of 46% from where the stock is currently trading.

 

Quealy noted, “While the near term remains in transition, we continue to be impressed by the fiscal discipline and focus on the emerging Internet of Things platform. We are looking for tangible signs of traction (design wins, JVs, M&A) to become constructive on shares”

The analyst continued, “With the sale of the grid division completed last quarter, results now consist entirely of IIoT-based solutions. Here, growth initiatives continue to progress nicely, including tangible wins for the nascent IzoT platform and expanding opportunities (and pilots) in lighting (bolstered by acquisition of outdoor lighting control company Lumewave). While related wins likely follow a long and lumpy path, we remain encouraged by recent strategic momentum.”

Echelon Corporation develops and markets energy control networking platforms. Its products enable everyday devices, including air conditioners, appliances, electricity meters, light switches, thermostats, and valves to be inter-connected.