JP Morgan raises its rating on Synchronoss Technologies SNCR from Neutral to Overweight and maintains its $27 price target.
JP Morgan notes, "We are upgrading SNCR to OW from N based on valuation. SNCR shares have pulled back 39% since 1Q12 earnings where management talked about AT&T 6th channel reducing volumes. We think the $9M reduction is now priced in and at 1.6x EV/Sales, 13x earnings and 9x FCFF on 2013E, the risk reward now favors to the upside. We do not believe this is a broken business. SNCR remains a double digit organic grower, it is continuing to expand in all channels at AT&T, it just signed a long-term expanding relationship at Verizon and there is potential for upside with additional carrier or upsell opportunities."
SNCR closed at $17.21 on Wednesday.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in