There’s a lot to be optimistic about in the Technology sector as 3 analysts just weighed in on RumbleON Inc (RMBL), Net 1 Ueps (UEPS) and Liveperson (LPSN) with bullish sentiments.
RumbleON Inc (RMBL)
In a report released today, Sameet Sinha from B.Riley FBR reiterated a Buy rating on RumbleON Inc, with a price target of $9. The company’s shares closed yesterday at $5.08, close to its 52-week low of $4.38.
Sinha noted:
“We reiterate our Buy rating on RumbleOn (RMBL) as the company released higher-than- expected units/revenue data and also proposed a $30M convert offering. The company expects units in the Q of 12,090 versus our estimate at 11,734 and guided range of 11,500-11,800. Resulting revenue is expected to be $223-$223.5M which compares to our/consensus at $207M/$211M. No GM/AEBITDA/FCF information was provided and we will have to wait for the formal earnings announcement after market close on 5/13 to be followed by a conference call the next morning. Concurrently, the company announced an intention to offer $30M in convertible senior notes due 2024 in a private placement to qualified buyers. The interest rate, initial conversion rate and other terms of the notes are to be determined upon pricing of the offering.”
According to TipRanks.com, Sinha is a 4-star analyst with an average return of 8.1% and a 51.8% success rate. Sinha covers the Technology sector, focusing on stocks such as Digital Turbine Inc, Limelight Networks, and Brightcove Inc.
Currently, the analyst consensus on RumbleON Inc is a Moderate Buy with an average price target of $9.75.
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Net 1 Ueps (UEPS)
In a report released today, Scott Buck from B.Riley FBR maintained a Buy rating on Net 1 Ueps, with a price target of $7. The company’s shares closed yesterday at $3.75, close to its 52-week low of $2.78.
Buck said:
“Net 1 UEPS Technologies, Inc. (UEPS—Buy, $7PT) reported fiscal 3Q19 operating results with an adj. EBITDA loss of $1.1M, better than our expected adj. EBITDA loss of $5.4M and ahead of management’s previously issued guidance for a loss of $5.0M. As expected, results were noisy given the ongoing restructuring within the financial inclusion business lines. However, better- than-expected adj. EBITDA coupled with several favorable data points within the release give investors a number of reasons to be optimistic. Management still expects to reach break-even within its South African operations by June, consistent with previous messaging, as the company has been able to stabilize the number of active EPE accounts at ~1.1M. In addition, the company ended the quarter with $24M of net cash and as of now has eliminated any long-term debt.”
Buck has an average return of 3.9% when recommending Net 1 Ueps.
According to TipRanks.com, Buck is ranked #4114 out of 5181 analysts.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Net 1 Ueps with a $7 average price target, which is an 86.7% upside from current levels. In a report issued on May 3, Maxim Group also maintained a Buy rating on the stock with a $7 price target.
Liveperson (LPSN)
In a report released today, Zach Cummins from B.Riley FBR reiterated a Buy rating on Liveperson, with a price target of $35.50. The company’s shares closed yesterday at $28.33, close to its 52-week high of $30.50.
Cummins noted:
“We attended LivePerson’s (LPSN) May 8. The event, which marks the company’s first 7 years, hosted an estimated 70 investors and analysts. We came away from the event with increasing confidence in LPSN’s ability to accelerate revenue growth to 20% and beyond in the coming years. We highlight three key takeaways from the event. 1) LPSN has a market-leading conversational commerce platform (LiveEngage) that is further validated by its blue-chip customer list. With its current data moat, LPSN has a sustainable competitive advantage that cannot only maintain, but possibly extend its lead in the conversational commerce market. 2) Management outlined a $60B TAM across the enterprise, mid-market, and small business markets.”
According to TipRanks.com, Cummins ‘ ranking currently consits of no stars on a 0-5 ranking scale, with an average return of -11.7% and a 35.7% success rate. Cummins covers the Technology sector, focusing on stocks such as ServiceSource International Inc, ChannelAdvisor, and Computer Task.
Liveperson has an analyst consensus of Strong Buy, with a price target consensus of $35.55, implying a 25.5% upside from current levels. In a report issued on May 3, Needham also maintained a Buy rating on the stock with a $35 price target.
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