Craig-Hallum Analyst Anthony Stoss upgraded CalAmp Corp. ( CAMP ) rating to Buy from Hold, saying he still expects industry-wide supply constraints to weigh on performance through FY23, but the environment should improve from here.
The connected intelligence company is successfully growing its SaaS business, according to the analyst.
Stoss also raised the price target on the stocks to $10 from $8.
The stocks were trading ~6% higher at $6.14.
Stoss believes the company has suffered major component shortages over the last six quarters, but the worst is behind CalAmp and much of the risk is already baked into the stock.
The move comes after CalAmp published an investor presentation last week, which says it is poised to scale and increase profitability through the conversion of its installed base and acceleration of organic Saas growth.
The company had posted Q1 GAAP EPS of -$0.34 misses by $0.09 and revenue of $64.7M (-18.8% Y/Y) misses by $4.73M. It missed top-line expectations as revenues continued to struggle amid supply problems.
On the contrary, Seeking Alpha's Quant Rating system gives the stocks a Strong Sell rating.
The company has revenue growth of -3.37%, while the information technology sector median is 14.82%. The one-year price performance is of -62.74%, while the sector median is -30.7%.
The sell-side analysts also give the stocks a Buy rating on an average, with an average price target of $9.75.
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Craig-Hallum analyst upgrades CalAmp to Buy from Hold