Sequans Communications (SQNS) PT Raised to $11 at Canaccord Genuity after Analyst Day Highlights IoT Opportunity

Canaccord Genuity analyst T. Michael Walkley raised the price target on Sequans Communications (NYSE: SQNS) to $11.00 (from $9.00) after the company hosted an upbeat analyst meeting. The global ecosystem for CAT-M1 and NB-IoT solutions appears to be gaining traction and ramping in volume leaving the company well positioned to generate IoT-related revenue through 2022 and beyond.

The analyst maintained a Buy rating, stating "With CAT-1 remaining a solid market for Sequans through 2023 with potential to reaccelerate in growth in 2H/21, our expectations for CATM1/NB-IoT sales to ramp through 2022 and beyond, and broadband sales improving due to the work and study from home demand, we anticipate product sales drove Sequans’ growth sequentially to close out 2020 with anticipated strong year-over-year growth trends through 2022 and beyond. Given the improvements expected in IoT combined with broadband returning to growth and our increasing confidence in Sequans overall growth opportunities longer-term, we reiterate our BUY rating and increase our price target to $11 based on EV of 4.0x our increased 2022 revenue estimate."

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