Northland Securities analyst Michael Latimore maintained a Buy rating on Calamp Crop (CAMP) today and set a price target of $20. The company’s shares closed yesterday at $10.95, close to its 52-week low of $9.95.
Latimore noted:
“We could see the categories blend over time, such as is starting at Twilio and Ooma. SOTP and Rule of 40. IoT companies have non-SaaS elements, such as hardware and consumer services. We use a sum-of- the-parts (SOTP) approach to determine implied SaaS valuations for such business segments. The tables attached show those values. The median Rule of 40 (SaaS growth plus EBITDA margin) metric across all companies covered is 33 and the median EV/SaaS value under an SOTP is 5.8x. Additionally, we believe the Rule of 40 is the best barometer for valuing SaaS businesses. Companies in the broader SaaS group and that have a metric in the 20-30 range garner about 5.4x CY19 revenue today. Broader SaaS comps are attached too, segmented by major Rule of 40 ranges. CAMP Attractive.”
According to TipRanks.com, Latimore is a 5-star analyst with an average return of 13.1% and a 58.5% success rate. Latimore covers the Technology sector, focusing on stocks such as Super League Gaming Inc, The Meet Group Inc, and Brightcove Inc.
Currently, the analyst consensus on Calamp Crop is a Moderate Buy with an average price target of $16.25.
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Calamp Crop’s market cap is currently $368M and has a P/E ratio of 360.20. The company has a Price to Book ratio of 1.85.
Based on the recent corporate insider activity of 14 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 CAMP in relation to earlier this year. Most recently, in May 2019, Michael Burdiek, the President & CEO of CAMP bought 20,000 shares for a total of $64,400.
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.
CalAmp Corp. is a provider of Internet of Things (IoT) enablement solutions for a broad array of mobile and fixed applications serving multiple vertical markets worldwide. It offer solutions for mobile resource management and applications for the broader IoT market, enabling customers to optimize their operations by collecting, monitoring and efficiently reporting business-critical data and desired intelligence from high-value remote and often mobile assets. The company segments include Telematics System and Software and Subscription Services. CalAmp was founded in 1981 and is headquartered in Irvine, CA.
