Buy CalAmp (CAMP) on Pullback - FBR Capital

FBR Capital analyst Scott Thompson reiterated an Outperform rating and $28 price target on CalAmp Corp. (NASDAQ: CAMP) saying the recent market sell-off has created an attractive entry opportunity.

"We find CalAmp a strong investment proposition for three reasons: (1) We expect growth opportunities to continue to drive a robust top line (13% in FY15); (2) profitability, liquidity, and cash-generating ability remain strong and are improving; and (3) at 21x our projected CY14 earnings of $0.88, the stock continues to be valued attractively," Thompson said.

He added, "We believe the numerous opportunities likely to drive the business in FY15 (CAT, telematics, energy, etc.) are on track, despite some opportunities taking longer than one or two quarters to fully materialize. Our bottom-up analysis gives us confidence in management’s ability to drive near-term opportunities to, and possibly above, the consensus estimates, leaving only timing of some of the longer-term projects (e.g. heavy equipment) as variable. As a result, after the stock's recent sell-off, we believe CalAmp’s investment profile has dramatically improved as estimates appear conservative. We urge investors to use the recent pull-back to get involved in CAMP."

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

Shares of CalAmp Corp. closed at $19.07 yesterday.

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