Canaccord Genuity Reiterates Buy on Calamp Corp. (CAMP) Following 3Q Beat

Canaccord Genuity reiterated a Buy rating on CalAmp Corp. (NASDAQ: CAMP), and raised the price target to $27.00 (from $26.00), following the company's 3Q earnings report. CalAmp reported strong sales of $74.7M and pro-forma EPS of $0.31 versus Canaccord's recently increased $74.0M/$0.29 estimates. 4Q revenue guidance of $75.5M and pro-forma EPS guidance of $0.30 at the mid-point were basically consistent with $76.3M/$0.30 estimates.

Analyst Michael Walkley commented, "CalAmp reported strong Q3/F’16 results and issued Q4/ F’16 guidance consistent with our estimates. We believe CalAmp’s Wireless DataCom business is well positioned to drive strong F2016 and F2017 sales and earnings growth driven by ramping sales to Caterpillar, growing insurance telematics sales, ramping international sales, a growing product portfolio, an increasing list of new customer opportunities, and anticipated steady growth of higher-margin recurring revenue sales. While management did not update progress on its proposed LoJack acquisition, we believe this proposed combination would be immediately accretive to margins and adjusted EBITDA and offer additional synergies with CalAmp’s OB2, SmartDriverClub, and Crashboxx telematics solutions and initiatives. We maintain our BUY rating and increase our price target to $27 based on our introduced F2018 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 $19.45 yesterday.

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