FBR Capital Starts TeleNav (TNAV) at Outperform

October 17, 2016 6:20 AM EDT
Get Alerts TNAV Hot Sheet
Price: $9.35 +1.63%

Rating Summary:
    5 Buy, 5 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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FBR Capital initiates coverage on TeleNav (NASDAQ: TNAV) with a Outperform rating and a price target of $15.00.

Analyst Christopher Van Horn commented, "We are initiating coverage of Telenav, Inc. (TNAV) with an Outperform rating and a $15 price target. The company is, in our view, best positioned to capture share in a growing embedded-connected automotive navigation market that could become a key part of OEM and regulator emphasis on ADAS and vehicle-to-infrastructure technologies. In fact, over the long term, we believe positioning and navigation information like that provided by Telenav could be a key component of autonomous driving. However, current levels do not appear to reflect the market opportunity facing this company; instead, an ongoing business transition away from mobile phone navigation, toward automotive, has diluted profits and led the stock lower. We think this is a relatively short-term phenomenon obscuring a significant longterm opportunity. We estimate that Telenav's opportunity set deserves a 2.1x target EV/sales multiple (NTM basis); this is in line with comps and in our view is supported by recent M&A multiples in the navigation space. Based on this, we recommend the shares at current levels."

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

Shares of TeleNav closed at $5.72 yesterday.

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