KLR - Kaleyra: Undervalued Competitive And A Potential Acquisition Target

• The CPaaS market is a highly dynamic one, with a lot of competition as well as consolidation through M&As.
• Kaleyra, contrarily to Vonage generates much higher growth, but, still, shares are in negative territory.
• This could be due to its lower gross margins and high debt/equity metric, but things are changing with profitability improving and management having a clear strategy for sustainable growth.
• At the current share price of $10, it is attractively valued relative to the IT sector by over 60%.
• Its small market cap and undervaluation could also turn it into an acquisition target, just like Vonage, which was acquired by Ericsson.

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