Canaccord Genuity Cuts Price Target on Calamp Corp. (CAMP) to $23 Following 3Q Report

Canaccord Genuity maintained a Buy rating on CalAmp Corp. (NASDAQ: CAMP), and cut the price target to $23.00 (from $25.00), following the company's 3Q earnings report.

Analyst Michael Walkley commented, "Investment recommendation: CalAmp reported Q3/F’17 revenue and EPS below our expectations primarily due to increased legal expenses and adverse F/X expenses. However, management provided Q4/F’17 guidance slightly better than our expectations due to improving trends in the North American MRM market. LoJack’s revenue was slightly below expectations as a result of logistical issues surrounding two large international licensees, but these products shipped in early Q4/F’17. We maintain our belief the LoJack acquisition will drive strong long-term growth opportunities. We also expect recently introduced products for ELD compliance to help drive an upgrade cycle of in-cab higher ASP telematics hardware that should contribute to improved MRM growth trends in F2018 and F2019 following sluggish sales growth in F2017. Overall, we believe CalAmp is well positioned to drive F2018 and F2019 sales and earnings growth driven by steady sales to Caterpillar, ramping international sales, a growing product portfolio, an increasing list of new customer wins such as Omnitracs, steady growth of higher-margin recurring revenue sales, and solid contributions from global LoJack expansion combined with selling new products through the LoJack channel. We maintain our BUY rating but lower our price target to $23 due to our lowered estimates."

For an analyst ratings summary and ratings history on CalAmp Corp. click here. For more ratings news on CalAmp Corp. click here.

Shares of CalAmp Corp. closed at $15.73 yesterday.

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