Dougherty & Co Starts AuthenTec (AUTH) at Buy; An Inexpensive Call Option on the Mobile Wallet
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Price: $8.01 --0%
Rating Summary:
1 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
1 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Dougherty & Co initiates coverage on AuthenTec (NASDAQ: AUTH) with a Buy. PT $5.00.
Dougherty analyst says, "We believe AuthenTec’s ~$2 biometric fingerprint sensors have the opportunity to become an authentication technique on “digital wallet” smartphones that use near-field communication (NFC) technology to pay for goods wirelessly. This has the potential to grow exponentially as iSuppli projects 545MM NFC-enabled handsets will ship in 2015 vs. tens of millions in 2011."
"Even at niche penetration levels on handsets, we believe AuthenTec can have $0.50 of earnings power. We define niche as 10%-15% penetration – equivalent to fingerprint swipe’s penetration level in notebook PCs today. On nearly ~700MM smartphone shipments in 2013, this is a $140MM-$210MM revenue opportunity. We believe the company would have $0.51-$0.84 of earnings power on $140MM-$210MM of annual handset revenue (vs. ~$10MM today)."
For an analyst ratings summary and ratings history on AuthenTec click here. For more ratings news on AuthenTec click here.
Shares of AuthenTec closed at $2.59 yesterday.
Dougherty analyst says, "We believe AuthenTec’s ~$2 biometric fingerprint sensors have the opportunity to become an authentication technique on “digital wallet” smartphones that use near-field communication (NFC) technology to pay for goods wirelessly. This has the potential to grow exponentially as iSuppli projects 545MM NFC-enabled handsets will ship in 2015 vs. tens of millions in 2011."
"Even at niche penetration levels on handsets, we believe AuthenTec can have $0.50 of earnings power. We define niche as 10%-15% penetration – equivalent to fingerprint swipe’s penetration level in notebook PCs today. On nearly ~700MM smartphone shipments in 2013, this is a $140MM-$210MM revenue opportunity. We believe the company would have $0.51-$0.84 of earnings power on $140MM-$210MM of annual handset revenue (vs. ~$10MM today)."
For an analyst ratings summary and ratings history on AuthenTec click here. For more ratings news on AuthenTec click here.
Shares of AuthenTec closed at $2.59 yesterday.
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