In a report released today, Amit Dayal from H.C. Wainwright maintained a Buy rating on Pointer Telocation Ltd (PNTR), with a price target of $24.50. The company’s shares closed yesterday at $14.09.
Dayal wrote:
“We believe the ramp in Products sales should come from the new LTE solutions for CANiQ sales in India, and other 4G offerings. Management expects Products shipments to begin accelerating starting in March 2019 and continue into the rest of the year. We believe the $8.5M Products order announced in December 2018 accounts for a large portion of this ramp. Management commented that margins associated with this order are approximately 24-25% vs. the typical 40% on Products sales. The company’s subscriber base was 276,000 at the end of 4Q18 vs. 274,000 at the end of 3Q18. The company dropped 3,000 low margin subscribers in 4Q18; we believe management will continue to phase out lower margin subscribers. However, the outlook for subscriber growth for the company in 2019 remains positive in most markets, except in South Africa.”
According to TipRanks.com, Dayal ‘s ranking currently consits of no stars on a 0-5 ranking scale, with an average return of -7.6% and a 40.8% success rate. Dayal covers the Industrial Goods sector, focusing on stocks such as Ballard Power Systems, Capstone Turbine Corp, and Orion Energy Systems.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Pointer Telocation Ltd with a $22.25 average price target, implying a 57.9% upside from current levels. In a report issued on February 25, B.Riley FBR also assigned a Buy rating to the stock with a $20 price target.
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The company has a one-year high of $16.20 and a one-year low of $10.25. Currently, Pointer Telocation Ltd has an average volume of 18.02K.
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Pointer Telocation Ltd. engages in mobile resource management products and services. It operates through the following segments: Mobile Resource Management (MRM), Roadside Assistance Services, and Cellocator. The MRM segment offers asset tracking services, fleet management services, and stolen vehicle retrieval services.
