VIAV - National Instruments Looks Like It May Be Building Toward Something More Interesting
- National Instruments delivered a better than expected fourth quarter, with surprising operating leverage despite gross margin pressure.
- NATI is leveraged to growth in 5G spending, particularly controversial mmWave technologies, as well as EVs and ADAS, and offers a compelling software-based platform.
- Improving the company's salesforce execution/efficiency is a critical must-do, as NATI's lagging operating leverage is a key potential source of value.
- Giving NATI at least partial credit for meaningful operating margin improvement over the next decade, combined with good revenue growth potential, suggests attractive undervaluation.
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National Instruments Looks Like It May Be Building Toward Something More Interesting