Sierra Wireless (SWIR) Component Demand Crimps Upside, Roth Capital Reiterates Buy

Roth Capital analyst Scott Searle reiterated a Buy rating and $25.00 price target on Sierra Wireless (NASDAQ: SWIR) after the company reported reported 4Q20 sales from continuing operations above consensus expectations and in-line with its 1/21/21 positive pre-announcement. Results
featured a favorable mix where 27% of sales is recurring revenue rising 25% y/y and the growing demand pipeline reflected in record LTARR figures (up 40% seq). While management remains comfortable with 1Q21 consensus, component constraints are constraining upside by $15M+ (15%).

The analyst stated "We modestly adjust our estimates and maintain our Buy rating given the deeply discounted valuation (1.0x EV/Sales), improving demand outlook and underappreciated balance sheet."

For an analyst ratings summary and ratings history on Sierra Wireless click here. For more ratings news on Sierra Wireless click here.

Shares of Sierra Wireless closed at $17.37 yesterday.

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