Identive (INVE) Ramps on Key Cisco Deal; Cowen Sees Meeting, Exceeding Midpoint of FY15 Revenue Outlook

Identive Group (NASDAQ: INVE) ripped higher Thursday after it announced entering into an agreement with Cisco Systems Inc. (Nasdaq: CSCO) to provide solutions for the Internet of Everything (IoE).

Cowen and Company affirmed its Outperform rating and $24 price target on the stock following the news.

On the deal, Cown analyst Bryan Prohn commented, No financial terms of the partnership were disclosed, but with many key products in the agreement likely to be available this summer, clear top-tier distribution channels and partnership momentum (e.g., Cisco, 3M, Stanley, Tyco, Verizon), an improving outlook for government sales and a uniquely differentiated technology partnership catalyst in Identiv Labs, we remain confident INVE is wellpositioned to meet or exceed the midpoint of its F2015 $95 - 105 million revenue guidance range (the high-end of the range represents ~30% Y/Y growth).

Our $24 price target is based on a ~3.0x EV/Sales multiple (a meaningful discount with median EV/S of our select comp group) as we continue to expect INVE to close the valuation gap during 2015 as revenue lumpiness wanes and execution and transparency improve.

For an analyst ratings summary and ratings history on Identiv, Inc. click here. For more ratings news on Identiv, Inc. click here.

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