Roth Capital Reiterates Neutral On ZAGG Following A Distribution Agreement With InMotion Entertainment
In a research note released today, Roth Capital analyst Dave King reiterated coverage with a Neutral rating on shares of ZAGG Inc (ZAGG) and a $4.50 price target, following a new distribution agreement with InMotion Entertainment, the largest U.S. Airport retailer of entertainment and electronics with 87 locations nationwide. InMotion will sell screen protection, power management and tablet keyboards.
“We view this as a positive win for ZAGG as it expands its distribution channel and further accelerates the potential growth for certain key product lines like keyboards. We continue to believe ZAGG is poised for a stronger 2H14 with the launch of new products and expectations for InvisibleShield returning to growth following the launch of 2 new iPhones. Our Neutral rating reflects our concern that ZAGG is overly device launch-dependent as well as worries surrounding the long-term viability of certain key product categories, but believe Sapphire Glass is currently too costly to obsolete InvisibleShield”, King noted.
According to TipRanks.com, which measures analysts and bloggers success rate based on how their calls perform, analyst Dave King currently has a one-year average return of 2.1% and a 52% success rate. King has an -31.5% average profit recommending ZAGG, and is ranked #1820 out of 3210 analysts.