Inseego's Turnaround Gains Traction: New Products And Partnerships to Fuel Future Growth, Says Analyst
In This Article:
Roth MKM analyst Scott W. Searle upgraded Inseego Corp. (NASDAQ:INSG) from Neutral to Buy, raising the price forecast from $13 to $15.
Searle highlights the company’s successful balance sheet recapitalization and reducing net debt. The analyst also notes strong growth in core products, up 25%, and emphasizes the experienced management team.
Looking ahead, Searle sees new products, evolving sales channels, and potential acquisitions to boost the company’s outlook for 2025 and 2026.
In the third quarter, the company’s results and fourth-quarter guidance were affected by the sale of its Telematics business, which is now classified as discontinued. This made comparisons tricky, showing only 5% growth, compared to around 25% organic growth, the analyst writes. The sale of Telematics is expected to reduce annual EBITDA by $8-10 million.
Also Read: Disney Q4 Earnings: Revenue And Profit Beat, Best Film Studio Performance, 3-Year Outlook And More
However, core product growth is strong, with hotspots returning to growth (20% in 2024 and 45% in 2H24).
Searle sees new products and better carrier partnerships to drive continued growth in Mobile Solutions (hotspots) through 2025 and 2026, with projected growth rates of 8% and 20%+ respectively.
The analyst noted that the company is expected to drive continued growth through more focused product development and strategic go-to-market approaches.
Searle adds that with an improved balance sheet, inorganic growth opportunities, such as mergers and acquisitions, are also becoming a more viable option.
For FY24, the analyst projects earnings of 2 cents per share, followed by 38 cents per share in FY25 and 70 cents per share in FY26.
Price Action: INSG shares are trading higher by 11.9% to $12.12 at last check Thursday.
Photo by Ground Picture on Shutterstock
Read Next:
Latest Ratings for INSG
| Date | Firm | Action | From | To |
|---|---|---|---|---|
| Mar 2022 | Canaccord Genuity | Upgrades | Hold | Buy |
| Aug 2021 | Roth Capital | Maintains | Neutral | |
| Mar 2021 | Lake Street | Downgrades | Buy | Hold |
View More Analyst Ratings for INSG
View the Latest Analyst Ratings
UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets.
Get the latest stock analysis from Benzinga?
This article Inseego's Turnaround Gains Traction: New Products And Partnerships to Fuel Future Growth, Says Analyst originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.