John Henderson
Long/short equity, Growth, momentum, event-driven

Perceptron's Pivotal Inflection Point Could Lead To 75% Upside In 2014

We believe that shares of Perceptron Inc. (NASDAQ:PRCP), the leader in image-based automated inspection technology, have 75% upside by the end of 2014. Our bullish thesis on Perceptron centers on Helix, the company's 3D sensor scanning technology, which has recently begun to enjoy accelerated adoption. On Thursday, January 9th, the company secured its largest order yet for Helix at one manufacturing site, a ~$5 million contract with, most likely, either BMW or Volkswagen.

Considering the tremendous leverage in the company's model as quarterly revenues trend above $20 million, we believe Perceptron has $1.20 in earnings power for its upcoming fiscal year ending June 30th, 2015. Increased adoption of Helix could propel Perceptron to $100 million in sales...

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