UPDATE: Deutsche Bank Initiates Coverage On Mavenir On Favorable Risk/Reward

In a report published Thursday, Deutsche Bank analyst Brian Modoff initiated a Buy rating on Mavenir MVNR and initiated a price target of $14.00. In the report, Deutsche Bank says "We view Mavenir as a thematic small cap idea; a pure play on the +$15B multi- year telco spend on 4G mobile voice (VoLTE/WiFi), SMS/MMS messaging, rich communications services, etc. While our research points to 2H14+ as an early inflection point for VoLTE/WiFi and LTE messaging rollouts by the Tier-1s, favorable risk/reward at current levels (stock trading at ~2x DB CY14e revs; peer group in the 3x range) and opportunities to sell VoLTE/WiFi into DT, Vodafone, T-Mobile US, etc and RCS/SMS into AT&T, etc could be drivers for upside to the CY14/15 consensus view – basis for our initiation with a Buy rating. Our $14 PT is ~3x our CY14 rev estimate." Mavenir closed on Wednesday at $9.70.