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Needham & Company Upgrades Smith Micro Software (SMSI) to Buy

February 25, 2015 6:14 AM EST
Get Alerts SMSI Hot Sheet
Price: $0.34 --0%

Rating Summary:
    7 Buy, 8 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 7 | Down: 3 | New: 1
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Needham & Company upgraded Smith Micro Software (NASDAQ: SMSI) from Hold to Buy with a price target of $2.10.

Analyst Richard Valera commented, "SMSI's 4Q14 report included two important milestones for the company -- its first profitable quarter and its first annual guidance in 4 years. In our view, the company's business appears poised for solid growth entering 2015 as it continues to grow its core Commsuite products (primarily sold to Sprint today) and and likely layers on multiple new Tier 1 deals related to its Netwise family of network onboard/offload optimization. While acknowledging the inherent q/q lumpiness associated with carrier-related revenue remains a risk, we believe the company is well positioned to achieve our estimates for 2015. As such, we upgrade to Buy from Hold and establish a PT of $2.10, ~20x our 2016E ex-cash NG EPS."

The firm's estimates for 2015 are essentially unchanged at $46.5MM/$0.05 NG EPS. In addition, they are initiating 2016 estimates of $51.5MM/$0.09 NG EPS.

For an analyst ratings summary and ratings history on Smith Micro Software click here. For more ratings news on Smith Micro Software click here.

Shares of Smith Micro Software closed at $1.58 yesterday.



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