UPDATE: Canaccord Genuity Initiates Numerex to Buy on Growth Momentum

Canaccord Genuity initiated coverage on Numerex

with a Buy rating and a $15 price target. Canaccord Genuity noted, "We forecast strong M2M market growth over the next decade across a wide range of M2M vertical markets. Further, we believe Numerex's vertically integrated Device Network Application (DNA) M2M offering is well positioned in key verticals such as security, remote monitoring, and asset tracking and should grow in line with our 25% M2M unit growth CAGR estimate over the next several years. With our expectation an increasing mix of recurring services revenue should drive considerable operating leverage from Numerex's prior infrastructure and platform R&D investments, we believe Numerex should post strong sales and earnings growth." Numerex closed at $11.41 on Friday.