There’s a lot to be optimistic about in the Technology sector as 3 analysts just weighed in on Smith Micro Software (SMSI), OneSpan Inc (OSPN) and Sonim Technologies Inc (SONM) with bullish sentiments.
Smith Micro Software (SMSI)
B.Riley FBR analyst Josh Nichols reiterated a Buy rating on Smith Micro Software today and set a price target of $8.50. The company’s shares closed yesterday at $3.45, close to its 52-week high of $3.50.
“Software, Inc. (SMSI, $8.50 PT) reported 2Q19 results that surpassed all expectations with an acceleration of both revenue growth and profits, sending shares are up 34% after hours. 2Q revenue of $10.9M beat our $8.7M and consensus of $8.6M, with SafePath revenue growth accelerating from 75% ($3.8M or 35% of revenue). The company achieved growth across all three core wireless solutions (CommSuite, SafePath, and ViewSpot), and we believe SMSI is well poised for a strong 2H19. To this point, management confirmed that SafePath’s Q/Q revenue growth is currently on pace to achieve 30% in 3Q. Gross margin also increased 710 bps Y/Y to 91.0%. EBITDA of $3.6M (33.6% margin) eclipsed our and consensus $1.1M, which was supported by a $0.4M Q/Q reduction in opex.”
According to TipRanks.com, Nichols is a 4-star analyst with an average return of 15.1% and a 43.1% success rate. Nichols covers the Consumer Goods sector, focusing on stocks such as Adesto Technologies Corp, Pointer Telocation Ltd, and Immersion Corp.
Smith Micro Software has an analyst consensus of Moderate Buy, with a price target consensus of $6.25, an 81.2% upside from current levels. In a report released yesterday, Chardan Capital also reiterated a Buy rating on the stock with a $7.50 price target.
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OneSpan Inc (OSPN)
In a report released today, Dan Drawbaugh from B.Riley FBR reiterated a Buy rating on OneSpan Inc, with a price target of $22. The company’s shares closed yesterday at $15.87.
“Anti-fraud and transaction-security technology provider OneSpan (OSPN) reported 2Q19 results after the close on July 25. In our view, it was a solid quarter: The company moved AEBITDA back into positive territory, demonstrated mix-driven gross margin upside potential, and in our opinion, laid the groundwork for a back-half 2019 rebound in earnings power. OSPN is transitioning from hardware to software and services; hardware declined as a share of total sales from 66% in and we model it declining to 45% of total sales in FY20E.”
Drawbaugh has an average return of 14.8% when recommending OneSpan Inc.
According to TipRanks.com, Drawbaugh is ranked #3696 out of 5249 analysts.
Currently, the analyst consensus on OneSpan Inc is a Moderate Buy with an average price target of $20.67, representing a 30.2% upside. In a report released today, National Securities Corp also maintained a Buy rating on the stock with a $23 price target.
Sonim Technologies Inc (SONM)
B.Riley FBR analyst Zachary Silver maintained a Buy rating on Sonim Technologies Inc yesterday and set a price target of $18. The company’s shares closed yesterday at $13.33.
“Post close, 7/24, Sonim Technologies (SONM–Buy, $18 PT), in its first earnings report as a public company, announced 2Q19 revenue that exceeded consensus expectations, and issued guidance for both 2019 revenue and AEBITDA margin that came in ahead of our and consensus estimates at the midpoint. In our view, investors still seem to be grappling with how to think about SONM’s long-term revenue growth trajectory following the completion of AT&T’s FirstNet buildout. During its earnings call, SONM suggested that it not only sees FirstNet adoption in the early stages, but also that the overall transition from land mobile radio (LMR) devices (a ~$9B global market) to LTE-based mission-critical devices is just beginning.”
According to TipRanks.com, Silver is a 4-star analyst with an average return of 8.9% and a 64.9% success rate. Silver covers the Services sector, focusing on stocks such as Liberty Media Corporation Series A Liberty Formula One, Liberty Media Corporation Series C Liberty Formula One, and Entercom Communications.
Currently, the analyst consensus on Sonim Technologies Inc is a Strong Buy with an average price target of $17.75, a 33.2% upside from current levels. In a report released yesterday, National Securities Corp also maintained a Buy rating on the stock with a $17 price target.
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