UPDATE: Bank of America Initiates FleetMatics Group at Buy on Growth Drivers

Bank of America initiated coverage on FleetMatics Group

with a Buy rating and a $26 price objective. Bank of America noted, "FleetMatics has 16k customers and tracks more than 281k vehicles. However, it operates in a deeply underpenetrated end market with only 14% of eligible vehicles globally using fleet tracking solution. We see multiple levers for growth – 1) a large greenfield opportunity to go after with its web sales model and easy to use products, 2) several new products which can help increase ASP per unit and 3) increase cross-sell from roughly 25% of new sales from existing customers." FleetMatics Group closed at $21.40 on Friday.