Craig-Hallum Starts PowerFleet (PWFL) at Buy, 'Growth Potential From The Warehouse To On the Road'

Craig-Hallum analyst Anthony Stoss initiates coverage on PowerFleet (NASDAQ: PWFL) with a Buy rating and a price target of $9.00.

The analyst comments "We are initiating coverage on PWFL with a Buy rating and a $9 price target (3.5x EV/FY25E Sales) as we see their merger with MixT as a huge growth driver for FY24 and beyond. We highlight the company expects to “meet and beat” the Rule of 40 metrics in early 2026 and beyond as they see outpaced growth with their Unity software platform, which currently boasts ~1.8M subscribers between both MixT and PWFL and is interoperable with 130 different third-party devices. Further, we highlight PWFL specializes in in-warehouse solutions, and MixT specializes in on the road telematics. We believe the merger not only shows huge upside from a SaaS standpoint, but we see a “one plus one equals three” scenario forming from the company’s business. We believe long-term investors will be rewarded owning PWFL as they set goals for 20% revenue growth, 70% gross margins, and 30% adj. EBITDA margins with over 3M subscribers to their Unity platform."

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

Shares of PowerFleet closed at $3.77 yesterday.

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