Analysts Noah Kaye and Colin Rusch valued the developed business at $11 a share, up from earlier valuation of $7, and managed/SaaS unit at $6 a share, down from the previous valuation of $8 a share. They cited the following four types of buyer profiles for the company:
- Metering vendors.
- International integrators.
- Industrial firms creating IoT platforms.
- Companies engaged in Big Data.
In a research note, the brokerage said, "We believe SSNI has multiple opportunities to leverage its valuable technology platform, including optionality on the broader IoT, but will need to prioritize opportunities given resource constraints vs. larger smart metering and networking peers."
Oppenheimer sees the company recording double-digit growth in backlog in the fiscal year 2016. Similarly, the firm believes the base business has the potential to offer tail in the next five or six years, thus ensuring cash flow to support strategic planning on a long-term basis.
Although there are several possible ways to achieve long-term growth, the brokerage believes the company needs to characterize and implement the strategic priorities.
The stock traded flat at $13.97 at time of writing.
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