Market Overview

Raymond James Upgrades Mix Telematics, Says 2019 Estimates 'Look Sufficiently Conservative'

Share:
Raymond James Upgrades Mix Telematics, Says 2019 Estimates 'Look Sufficiently Conservative'
Related MIXT
28 Stocks Moving In Monday's Mid-Day Session
Tech Slide Makes These 5 Value Stocks Must-Buys
MiX Telematics goes ex-dividend tomorrow (Seeking Alpha)

The vehicle software-as-a-service company MiX Telematics Limited - ADR (NYSE: MIXT) has developed new fundamentals that improve the stock’s allure, according to Raymond James. 

The Analyst

Analyst Brian Peterson upgraded Mix Telematics from Outperform to Strong Buy with a $22 price target. 

The Thesis

The recent pullback gives investors a good opportunity to buy one of the strongest assets in the industry, despite recent concerns surrounding liquidity, currency risk and oil and gas exposure, Peterson said in the Monday upgrade note. (See the analyst's track record here.) 

“We’d note that all of these factors have improved over the last several quarters. Our opportunity to travel with management earlier this month also reinforced our belief that recent momentum with large fleet customers should continue in FY19, where we think our numbers look sufficiently conservative,” the analyst said. 

Macroeconomic headwinds such as significant declines in oil prices and weak South African growth began with the company's IPO and muted growth in recent years, Peterson said. 

“Positively, oil and gas fleets have rebounded nicely in CY17 and into CY18, with our energy team calling for further expansion in rig counts for the remainder of the year. We’d also note that GDP trends in South Africa have improved over the last few quarters, setting the table for more potential growth in the company’s largest geographic market." 

The potential for a U.S. listing creates a strong catalyst for Mix, as this move would close the valuation gap and facilitate further growth, according to Raymond James. 

Price Action

Mix Telematics shares were rallying 6.1 percent to $15.92 at the time of publication Monday. 

Related Links:

Oppenheimer: Electrification Will Galvanize Delphi, Drive Outperformance

Adient's Turnaround Will Take Years, Baird Says In Bearish Turn 

Latest Ratings for MIXT

DateFirmActionFromTo
Aug 2018Raymond JamesUpgradesOutperformStrong Buy
Jun 2018Canaccord GenuityMaintainsBuyBuy
Nov 2017Canaccord GenuityMaintainsBuy

View More Analyst Ratings for MIXT
View the Latest Analyst Ratings

Posted-In: Brian Peterson Raymond JamesAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga

 

Related Articles (MIXT)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
XECImperial CapitalDowngrades35.0
SSTIImperial CapitalUpgrades49.0
AVDLoop CapitalUpgrades29.0
FCREYDeutsche BankUpgrades0.0
OECUBSUpgrades34.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Mid-Morning Market Update: Markets Mostly Higher; PepsiCo To Buy SodaStream For $3.2 Billion

Tesla's Stock Continues Fall After JPMorgan Cuts Target To $195