PowerFleet Looks Oversold: Here's Why I'm Accumulating Shares

Jun. 20, 2025 10:07 AM ETPowerFleet, Inc. (AIOT) Stock, , , , ,
Grassroots Trading
1.77K Followers
(14min)

Summary

  • PowerFleet, Inc.'s pivot to an AI-driven, subscription-based platform is driving explosive revenue growth and a rising mix of recurring, high-margin sales.
  • Recent acquisitions have quadrupled subscriber count and fueled cross-sell momentum, but legacy churn and integration risks remain material headwinds.
  • Valuation is attractive at ~8× forward EV/EBITDA, with the market underpricing the company's operating leverage and SaaS transition amid a 16% CAGR industry.

Fleet management, freight transportation and smart logistics concept.

Scharfsinn86/iStock via Getty Images

Thesis

My research argues that PowerFleet, Inc.’s (AIOT) post-acquisition pivot from a hardware-heavy telematics vendor to an AI-driven, subscription-centric platform holds the potential to unlock outsized value, but only if early evidence of surging revenue, rising

This article was written by

1.77K Followers
I focus on producing objective, data-driven research, mostly about small- to mid-cap companies, as these tend to be overlooked by many investors. From time to time, though, I also look at large-cap names, just to give a fuller sense of the broader equity markets.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in AIOT over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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