Deutsche Bank Reiterates Buy Rating, $35 PT on Synchronoss Technologies

In a report published Friday, Deutsche Bank reiterated its Buy rating and $35.00 price target on Synchronoss Technologies

. Deutsche Bank noted, “SNCR tonight announced the acquisition of NewBay, a subsidiary of RIMM focused on storing, sharing and rendering content to a variety of devices like smartphones, PCs and TVs, for $55.5m in cash. RIMM had acquired Ireland-based NewBay for about $100m in October 2011 and had apparently been seeking a buyer in recent months as it shed non-core assets...We reiterate our Buy and $35 price target, leaving our estimates unchanged pending further disclosure on the revenue base of NewBay. Our $35 PT is based on a 2014E uFCF/sh of $1.20, 5-year uFCF growth of 27%, net of dilution and an EV/uFCF/G multiple of 1.0x, in line with its SaaS peer group. Risks include a pullback in operator spending and internal resistance from operator IT dept to deploy a third -party solution.” Synchronoss Technologies closed on Thursday at $20.49.