Analysts Are Bullish on Top Consumer Goods Stocks: Telenav (TNAV), SMTC Corp (SMTX)

By Jason Carr

There’s a lot to be optimistic about in the Consumer Goods sector as 2 analysts just weighed in on Telenav (TNAVResearch Report) and SMTC Corp (SMTXResearch Report) with bullish sentiments.

Telenav (TNAV)

B.Riley FBR analyst Josh Nichols maintained a Buy rating on Telenav on March 15 and set a price target of $9.50. The company’s shares opened today at $6.37, close to its 52-week high of $6.60.

Nichols said:

“We believe the key takeaway is the fact that management disclosed for the first time that the company is targeting ~10% adj. CFO margin once billings reach $300M/yr, which compares favorably to our 7% projection in FY20 (Jun)— we model $22M of adj. CFO with billings of $319M. If management achieves its 10% target next fiscal year, our $319M of projected billings would imply adj. CFO of around $32M, which is 42% above our $22M projection and we believe is significant given TNAV’s EV of ~$190M and minimal capex (averaging $1M-$2M per year).”

According to TipRanks.com, Nichols is a 4-star analyst with an average return of 13.1% and a 44.1% success rate. Nichols covers the Consumer Goods sector, focusing on stocks such as Adesto Technologies Corp, Pointer Telocation Ltd, and Immersion Corp.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Telenav with a $9.50 average price target.

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SMTC Corp (SMTX)

In a report released today, Mike Crawford from B.Riley FBR maintained a Buy rating on SMTC Corp, with a price target of $6. The company’s shares opened today at $4.41.

Crawford wrote:

“We are buyers of transformed SMTC Corporation (SMTX – following its 4Q18 report beating our above-consensus projections on all levels. While shares soared 11.5%, after hours, following the company’s 3/14 post-close report, we were surprised to see SMTX close down 17.7% on 3/15 following the company’s earnings call that morning. The most important messages we heard were: (1) that integration of recently acquired MC Assembly (MCA) was progressing smoothly; and (2) that strong top-line results were driven both by new customer wins and new engagements with existing customers.”

According to TipRanks.com, Crawford is a 4-star analyst with an average return of 7.3% and a 55.7% success rate. Crawford covers the Consumer Goods sector, focusing on stocks such as Kratos Defense, Silicon Motion, and Ducommun Inc.

Currently, the analyst consensus on SMTC Corp is a Moderate Buy with an average price target of $7.50.

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