UPDATE: JPMorgan Starts ZAGG Incorporated (ZAGG) at Overweight, Accessory King in the Mobile Era
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Price: $4.29 --0%
Rating Summary:
4 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 16 | New: 3
Rating Summary:
4 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 16 | New: 3
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(Updated - October 1, 2012 11:40 AM EDT)
Shares of ZAGG Incorporated (NASDAQ: ZAGG) are notably higher Monday following after a new bull entered the fray.
JPMorgan initiated coverage on with a Overweight rating and $13.50 price target, saying the company will emerge as a leading brand for accessories and peripherals in the mobile era.
"We expect ZAGG to post strong growth over the next two years, owing to channel and geographic expansion, product line extension, and robust attach-rates to underlying growth in smartphones and tablet shipments," analyst Paul Coster said. "Solid execution should shake off recent controversy and buoy the multiple for this heavily-shorted stock."
Coster notes ZAGG commands a leading 18% share of the U.S. mobile device protection accessory market and is consistently been first-to-market with accessories that attach to Apple's major products. "We think the ZAGG brand stands at the cusp of leadership in the CE accessory category, displacing PC-era brands," he said.
With smartphone unit growth of ~28% CAGR through 2014, and tablet growth of ~35%, this should fuel ZAGG revenue growth of ~26%, the analyst notes. This is without market share gain, higher attach-rates and stable/higher blended ASPs, all of which provide upside.
ZAGG sales should benefit from the iPhone 5 and iPad Mini product cycles heading into holidays and they believe will introduce compelling gaming peripherals and invisibleSHIELD services at CES 2013. Channel expansion should be a catalyst for the stock. "Solid execution could help draw a line under recent controversy associated with the founder's departure, buoying ZAGG's multiple," the analyst comments.
For an analyst ratings summary and ratings history on ZAGG Incorporated click here. For more ratings news on ZAGG Incorporated click here.
Shares of ZAGG are up 3.3 percent to $8.81.
Shares of ZAGG Incorporated (NASDAQ: ZAGG) are notably higher Monday following after a new bull entered the fray.
JPMorgan initiated coverage on with a Overweight rating and $13.50 price target, saying the company will emerge as a leading brand for accessories and peripherals in the mobile era.
"We expect ZAGG to post strong growth over the next two years, owing to channel and geographic expansion, product line extension, and robust attach-rates to underlying growth in smartphones and tablet shipments," analyst Paul Coster said. "Solid execution should shake off recent controversy and buoy the multiple for this heavily-shorted stock."
Coster notes ZAGG commands a leading 18% share of the U.S. mobile device protection accessory market and is consistently been first-to-market with accessories that attach to Apple's major products. "We think the ZAGG brand stands at the cusp of leadership in the CE accessory category, displacing PC-era brands," he said.
With smartphone unit growth of ~28% CAGR through 2014, and tablet growth of ~35%, this should fuel ZAGG revenue growth of ~26%, the analyst notes. This is without market share gain, higher attach-rates and stable/higher blended ASPs, all of which provide upside.
ZAGG sales should benefit from the iPhone 5 and iPad Mini product cycles heading into holidays and they believe will introduce compelling gaming peripherals and invisibleSHIELD services at CES 2013. Channel expansion should be a catalyst for the stock. "Solid execution could help draw a line under recent controversy associated with the founder's departure, buoying ZAGG's multiple," the analyst comments.
For an analyst ratings summary and ratings history on ZAGG Incorporated click here. For more ratings news on ZAGG Incorporated click here.
Shares of ZAGG are up 3.3 percent to $8.81.
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