Gary Cheng

Sierra Wireless Has Substantial Upside Potential In A Rapidly Growing M2M Market

Investment Thesis:

Sierra Wireless (NASDAQ:SWIR) is the global leading supplier of cellular M2M (machine-to-machine) modules. The cellular modules developed by the company enable machines to connect with each other through cellular networks operated by major wireless carriers. Sierra Wireless has a strong competitive advantage and a solid portfolio of products with advanced technological know-how. The company is well-positioned to capture growth opportunities of a rapidly growing M2M market to increase market share and improve margins. Based on my analysis and estimation, Sierra Wireless's stock price has substantial upside potential, possibly reaching the low $20s in 2015, while risk may be limited from the current level of $13.40. The table below summarizes the three scenarios considered in my model....

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