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Fresh off the news that its revenues doubled in its third-quarter, Sierra Wireless Inc. (NASDAQ:SWIR) saw its stock jump nearly 16% in trading Friday.

Richmond, B.C.-based Sierra, which makes modems for AT&T Inc. (NYSE:T) and Verizon Communications Inc. (NYSE:VZ), exceeded analysts expectations after they reported their net income rose sharply to US$9.04-million, or US33¢ a share. The positive results were helped in part by the rising sales of modems and the recent acquisition of Airlink Communications, a mobile data company.

The results made RBC Capital Markets analyst Mike Abramsky upgrade his rating on Sierra Wireless to "outperform" and raised his target price from US$23 to US$30.

"Recent valuation declines on competitive concerns are in our view overdone; pending technology transitions in our view play to Sierra Wireless' strengths in engineering, design, quality/reliability and brand," said Mr. Abramsky in a note. "We see competitive fears dissipating with new product launches and healthy results."

SWIR 1-yr chart:

Source: RBC Sees Sierra's Competitive Fears "Dissipating"