GARP Research reiterates a 'Buy' on Monotype Imaging (TYPE); A Favorite Idea Especially After Recent Pullback

GARP Research reiterates a 'Buy' on Monotype Imaging (NASDAQ: TYPE).

GARP analyst says, "Shares are down ~27% over the past month amidst the market turmoil and concerns about cyclicality. While overshadowed by the PC & software announcements, this fear was confirmed last week when HP (NYSE: HPQ) announced that commercial printer units were up only 1% y/y for the quarter. Management says this is short-term (Japan-related supply constraints), and HP volumes are less important to Monotype given the sweetheart deal they have. More importantly, Monotype has several initiatives that make it less vulnerable to cyclical swings in the laser jet market and could perhaps grow earnings in the face of a mild downturn. These include Webfonts, font-rendering solutions for e-readers & smart phones, and a portfolio of other stuff the company can sell to printer OEMs like page description languages, and graphical user interfaces for dumb touch screens."

For more ratings news on Monotype Imaging click here and for the rating history of Monotype Imaging click here.

Shares of Monotype Imaging closed at $10.10 yesterday.

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