Smith Micro a Play on Cell Demand - Analyst Blog
Smith Micro Software Inc. (
SMSI) is a developer of wireless communications software and utility software for multiple OS platforms. It has significant relationships with several large cellular providers and OEM cellphone manufacturers.
Third quarter 2008 results were mixed, with revenue below our estimate while the EPS was above our expectations. We are encouraged by the company's growing top-line as well as bottom-line. We maintain our estimates for 2009, though the company did not provide guidance for it.
Our rating remains a BUY with a target price of $12. The stock is currently selling at below the group averages. Since future earnings will be taxed, we feel that the PEG ratio should be closer to the group average.
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