Maxim Group Thinks Net 1 Ueps’ Stock is Going to Recover


In a report released today, Allen Klee from Maxim Group maintained a Buy rating on Net 1 Ueps (UEPS), with a price target of $12. The company’s shares closed yesterday at $4.71, close to its 52-week low of $4.32.

Klee noted:

“Expect F2Q19 revenue of $122M, down 18% y/y and Non-GAAP EPS of $0.09, down from $0.39 from prior year due mainly to lower South African (SA) government-related business.”

According to TipRanks.com, Klee is a 1-star analyst with an average return of -5.6% and a 49.1% success rate. Klee covers the Technology sector, focusing on stocks such as Sify Technologies Limited, Dolphin Entertainment Inc, and Atlantic Tele-Network.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Net 1 Ueps with a $11 average price target, representing a 133.5% upside. In a report issued on January 18, B.Riley FBR also initiated coverage with a Buy rating on the stock with a $10 price target.

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Based on Net 1 Ueps’ latest earnings release for the quarter ending September 30, the company reported a quarterly GAAP net loss of $5.13 million. In comparison, last year the company had a net profit of $9.48 million.

Based on the recent corporate insider activity of 25 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of UEPS in relation to earlier this year.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Net 1 UEPS Technologies, Inc. engages in the provision of payment solutions and transaction processing services in South Africa. The firm designs, develops, and markets transaction technology, solutions, and services.

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