Control4 (CTRL) Undervalued Based on AMX Takeover - Needham & Company

Needham & Company analyst Scott Zeller reiterated a Buy rating and $23 price target on Control4 Corporation (NASDAQ: CTRL) saying the acquisition of AMX (private) suggests shares are undervalued.

Zeller comments, "Earlier this week, AMX (private) was acquired by Harman (HAR – N/R) for $365m. Our field contacts suggest that AMX was acquired for approx. 2.25x CY14 revenue; our best estimate is AMX was in the $150-175m annual revenue range and growing below 5% annually. AMX is a leader in high end “enterprise control” solutions; Crestron (private) and AMX are often cited as competitors to Control4 (CTRL). We believe the valuation of the AMX transaction suggests Control4 shares are undervalued at their current 1.9x EV/CY15 revenue, considering CTRL is an 18%+ revenue grower. Maintain BUY and $23 target on CTRL, no change to estimates. Our $23 target is 2.9x EV/CY15 revenue."

For an analyst ratings summary and ratings history on Control4 Corporation click here. For more ratings news on Control4 Corporation click here.

Shares of Control4 Corporation closed at $17.44 yesterday.

You May Also Be Interested In

• Needham Upgrades Biogen (BIIB) to Buy
• JPMorgan Downgrades Wilcon Depot Inc. (WLCON:PM) to Underweight
• Morgan Stanley Starts Blackstone Digital Infrastructure Trust (BXDC) at Equalweight