UPDATE: Morgan Stanley Initiates Coverage on Mavenir Systems as Software License Revenue is Coming

In a report published Monday, Morgan Stanley analyst Scott Schmitz initiated coverage on Mavenir Systems MVNR with an Overweight rating and $13.00 price target. In the report, Morgan Stanley noted, “The migration of services to 4G LTE over the next several years drives a growing mix of high margin software revenue. Lumpy carrier spending patterns and timing uncertainty for VoLTE and RCS deployments create quarterly volatility, but the long-term opportunity remains on track. MVNR trades near the midpoint of the peer group average in the near-term with upward mobility as the mix of software revenue increases.” Mavenir Systems closed on Friday at $10.60.