Wednesday was an exciting day for Parateum (TEUM).
First, company founder Hal Turner rang the NASDAQ opening bell, then the company held its first analyst day, dubbed “Parateum Power,” in New York. Ahead of the honor, Turner said Parateum’s “unique service offering has reimagined the future of communications and we couldn’t be more excited about the large market opportunity in front of us…”
After attending the analyst day, Michael Latimore of Northland maintains his Outperform rating on TEUM stock, with a $8.50 target price. (To watch Latimore’s track record, click here)
Latimore continues “to see TEUM as having a unique opportunity to define the cloud-based communications business support systems market,” and calls TEUM “one of [his] top 2019 stock picks.”
Pareteum’s Experience Cloud “enables customers to create and manage the mobile service experience for their subscribers,” and is referred to as a “Platform-as-a-Service.” Latimore says the platform “provides the business support systems to run a mobile service, but also offers customers a virtual global cellular and WiFi network,” which the analyst believes “provides compelling economics.”
Latimore highlights Parateum’s large and growing customer base. He says the company has grown from “a couple customers to now over 1,000,” over the past few years. At analyst day, the company showed off examples of product usage, while hosting a customer panel that included the city of Kyiv, P3 Smart City and Deutsche Telekom.
Latimore points out that all the companies on the panel “mentioned the ability for [Parateum] to offer a horizontal platform and the flexibility not found elsewhere.” The analyst believes the company has an opportunity as the “competitive landscape is fragmented and regional.”
But the company seems to be in a good place. It has a far reach in the US, Brazil and across Europe. But not only that, Parateum’s customers are extremely large, including Swedish company Tele2 with more than 17 million subscribers and Deutsche Telekom, which sells Parateum’s wi-fi service to roughly 80 clients.
Beyond products and customers, the company is expecting growth to continue at a surging pace. Latimore says, “Management highlighted the strong growth trajectory, including 243% organic growth in 1Q19…[and] reiterated 255-285% growth and positive adj. EBITDA for the year.”
All in all, Pareteum’s stock is on a roll so far in 2019, and Wall Street doesn’t believes this will stop anytime soon. TipRanks analysis of five analyst ratings shows a Strong Buy rating, with all five analysts recommending Buy. The $8.00 price target represents a 91% increase from current levels. (See TEUM’s price targets and analyst ratings on TipRanks)