B.Riley FBR Remains a Buy on Sonim Technologies Inc (SONM)

By Carrie Williams

In a report released today, Zachary Silver from B.Riley FBR maintained a Buy rating on Sonim Technologies Inc (SONMResearch Report), with a price target of $7. The company’s shares closed last Monday at $3.76, close to its 52-week low of $3.67.

Silver commented:

“Sonim Technologies (SONM – Buy, $7 PT), preopen September 10, provided a jarring business update that featured significant downward revisions to its prior 2019 revenue and AEBITDA guidance, as well as a disclosure that CFO Jim Walker had stepped down. While a substantial drop for the stock was certainly warranted, we view the 47% one-day drop (versus a 1% gain for the Russell 2000) as overblown, particularly given that SONM already declined 40%+ since its July 24 earnings call. Moreover, our sense is that the bulk of the guidance reset was driven by a one-time issue with a major customer that produced a $25M hit to 2H19E revenue.”

According to TipRanks.com, Silver is a 3-star analyst with an average return of 2.2% and a 59.6% success rate. Silver covers the Services sector, focusing on stocks such as Liberty Media Corporation Series C Liberty Formula One, Entercom Communications, and Nexstar Media Group Inc.

Currently, the analyst consensus on Sonim Technologies Inc is a Moderate Buy with an average price target of $17.50.

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The company has a one-year high of $18.26 and a one-year low of $3.67. Currently, Sonim Technologies Inc has an average volume of 131.2K.

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Sonim Technologies, Inc. engages in the design and manufacture of mission-critical smart phone-based solutions for workers in extreme, hazardous, and isolated environments. Its products include ultra-rugged mobile phones, business process applications, and a suite of industrial-grade accessories.