UPDATE: Bank of America Initiates Coverage on Mavenir Systems on Strong Revenue Growth Model

In a report published Monday, Bank of America analyst Tal Liani initiated coverage on

with a Buy rating and $13.00 price target. In the report, Bank of America noted, “Mavenir is a direct play on 4G/LTE (Long Term Evolution), providing wireless carriers products used to deploy Skype-like services, such as Voice over IP, instant messaging and video conferencing. While Mavenir's IPO was priced well below the initial range, in our view this is one of the more misunderstood stocks with substantial growth potential over the next few years. We model revenue growth of 35%, 21% and 25% for 2013E, 2014E and 2015E, respectively, with meaningful margin improvement that is attributed to increase in demand for contracts already won, as well as new rollouts.” Mavenir Systems closed on Friday at $10.60.