CalAmp Corp. Surges On Earnings, Macquarie Upgrade

CalAmp Corp. CAMP shares surged Tuesday as it beat EPS estimates by $0.02 and was upgraded by Macquarie Research to Outperform.

Analyst Rajesh Ghai's $23 price target remained unchanged in a report issued late Monday.

Ghai believed "that CAMP is on the cusp of a material inflection in revenue and earnings growth."

He noted that "following the company’s 2Q FY 2015 report which suggests to us its revenue / earnings growth declines have bottomed and it is on the cusp of an upwards inflection revenue and earnings growth."

According to Ghai, he is very "very encouraged by the sequential gross margin improvement in the core Wireless Datacom segment” and the he would “not be surprised if CAMP’s multiple sees significant expansion, aided by the fact that it remains one of the pure plays in the secular M2M / IoT trend."

CalAmp Corp recently traded at $20.22, up 22.5 percent.