Market Overview

J.P. Morgan Reiterates Neutral Rating, $8 PT on Telenav

Related TNAV
FleetCor to Acquire Mobile Tracking Business
UPDATE: JP Morgan Cuts PT on TeleNav; Updates Model for Enterprise Business Sale

In a report published Monday, J.P. Morgan & Co. reiterated its Neutral rating and $8.00 price target on Telenav (NASDAQ: TNAV).

J.P. Morgan noted, “We met with TNAV's CFO last week. The company continues to make strong progress ramping sales into the Auto OEM segment (e.g., Ford), and ad-based revenue continues to grow rapidly from a low base. That said, we may have over-estimated the firm's leverage in negotiations with Sprint, heading into FY14, and we have trimmed the legacy paid-subscriber business accordingly. TNAV continues to transition from paid subs to ad-based search and navigation, which will weigh on earnings power through mid CY14 in our view. That said, we think the Scout-branded product is one of the best mobile navigation applications on the market, recognized as such by leading auto OEMs, and we think the firm remains well positioned in the nascent mobile LBS and advertising market, a potentially massive growth opportunity. Maintain Neutral. Price target remains $8.00.”

Telenav closed on Friday at $7.68.

Posted-In: J.P. Morgan & Co.Analyst Color Reiteration Analyst Ratings

 

Most Popular

Related Articles (TNAV)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters

Benzinga Professional