Kaleyra (KLR) Weakness is Unwarranted - Craig-Hallum

Craig-Hallum analyst George Sutton reiterated a Buy rating and $25.00 price target on Kaleyra (NYSE: KLR) on the belief that the company's no-code/low code flow builder and user interface allows it to target a broader non-developer audience within an enterprise, unlike Twilio who targets primarily just developers. These factors combined with a greater U.S. presence and mathematically higher margins through the mGage acquisition we believe justifies a much higher multiple than 1.5x FY22 sales.

The analyst stated "A lot of good is happening fundamentally, while the stock has remained under pressure. First, we believe the small Bandyer acquisition in early July fills out the company’s product portfolio from day one with voice/video APIs and as shown from the company’s website, additional differentiated use cases are coming soon. These include things like AI for facial recognition/verification, augmented reality to simulate objects using 3D models, and enhanced dashboard analytics. These use cases should further separate the company from its stigma as a SMS focused player, improve margins, and drive additional revenue growth through cross-selling and attracting new customers."

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

Shares of Kaleyra closed at $12.47 yesterday.

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