Oppenheimer Raises the Price Target on Silver Spring Networks (SSNI) to $17 Following Contract Win

October 7, 2016 9:32 AM EDT
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Price: $13.33 --0%

Rating Summary:
    12 Buy, 5 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 29 | Down: 29 | New: 6
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Oppenheimer reiterated an Outperform rating on Silver Spring Networks (NYSE: SSNI), and raised the price target to $17.00 (from $15.00), following the company's 2.8M-endpoint contract win with Entergy. Even without further large awards, Oppenheimer estimates that SSNI could report 25% growth in total backlog off FY15's adjusted $1B base.

Analyst Noah Kaye commented, "SSNI’s 2.8M-endpoint contract win with Entergy, announced yesterday, adds to a long-tailed backlog in the base business with five to six years of visible cash flow. Given that visibility, we pivot to longer term questions about SSNI’s strategic growth priorities. We believe SSNI has multiple opportunities to leverage its valuable technology platform, including optionality on the broader IoT, but will need to prioritize opportunities given resource constraints vs. larger smart metering and networking peers. Recent M&A activity in the space further emphasizes this point while supporting SSNI’s valuation. We raise our PT to $17 (from $15)."

For an analyst ratings summary and ratings history on Silver Spring Networks click here. For more ratings news on Silver Spring Networks click here.

Shares of Silver Spring Networks closed at $13.97 yesterday.

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