Morgan Joseph Initiates Coverage on Sierra Wireless (SWIR) with a Sell

November 25, 2008 9:56 AM EST

Morgan Joseph initiates coverage on Sierra Wireless, Inc. (Nasdaq: SWIR) with a Sell. Price target $4.90.

Morgan analyst says, "We are transitioning coverage of Sierra Wireless with a sell rating and a $4.90 price target. We believe that Sierra Wireless has been the beneficiary, in the past several years, of the growth in wireless data cards but is not well positioned to transform its business to the new market realities that we expect the company to encounter. Sierra has been successful with its wireless cards and most recently with its wireless USB adaptors but the future of mobile data is in embedded solutions and here Sierra may have a problem. The company is no longer competing primarily with Novatel Wireless (Nasdaq: NVTL) but rather with Qualcomm (Nasdaq: QCOM). Qualcomm, with its Gobi chipset, is quickly gaining the dominant market share in the embedded solution segment of this market."

Sierra Wireless, Inc. (Sierra Wireless) provides wireless wide area modem solutions for the mobile computing, rugged mobile and machine-to-machine (M2M) markets.

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