- Declaring the mobile accessory maker to be "a classic deep-value turnaround play," Wunderlich's Rommel Dionisio has launched coverage on ZAGG at Buy, and set a $13 target.
- Dionisio: "Following disappointing sales and earnings performance in 2013 and first half 2014, shares of Zagg remain valued at an approximate 25% discount to the peer group average on an EV/EBITDA basis." He notes Zagg respectively holds 40% and 25% of the screen protector and tablet keyboard markets, and predicts new products, retail channel expansion, better international distribution, and product line rationalization will bolster the company's fortunes.
- Though off its recent highs, Zagg remains up 32% since soundly beating Q4 estimates on Feb. 24. Shares go for 17x 2015E EPS and a little under 1x 2015E sales.