Morgan Stanley Sees Multiple Positive Factors For Mavenir Systems

In a report published Thursday, Morgan Stanley analyst Scott Schmitz reiterated an Overweight rating and $20.00 price target on Mavenir Systems MVNR. In the report, Morgan Stanley noted, “Three new tier 1 customers, a 3x Y/Y increase in voice and video revenue, and the addition of VoLTE capacity at Mavenir's US customers were key highlights in the quarter leading to a 6% revenue and $0.18 EPS beat. We remain Overweight with a $20 price target, which applies a 3.4x EV/Sales multiple to our FY15 estimate, the high-end of peer averages as the model shifts towards high margin software revenue.” Mavenir Systems closed on Wednesday at $12.26.