Com DEV is a buy, says Global Maxfin analyst Ralph Garcea
The increase in mobile data, television, radio and telecommunication services is a boon to Cambridge-based Com DEV (Com DEV Stock Quote, Chart, News: TSX:CDV), which has carved out a strong position in satellite communications, says Global Maxfin Capital analyst Ralph Garcea.
On Friday, Garcea initiated coverage of Com DEV with a BUY rating and one-year target of $5.00. He says the veteran company is not without risks, namely the potential for government budget cuts and sales cycles that can be especially long.
But there is real upside in the company’s current product offering, which since 2010 has included it majority-owned subsidiary exactEarth, a company that monitors ships by satellite and ground infrastructure, he says.
Garcea notes that since launching in 2010, exactEarth has grown its capacity and its customer base, and is addressing a market with mandated demand. The International Maritime Organization has stipulated that that Automatic Identification Systems (AIS) now be aboard all ships greater than 300 gross tonnage. Garcea says globally this market will exceed $100-million within five years.
Garcea says COM DEV’s space segment provides investors with broad overall exposure to the satellite space, as it sells things such as multiplexers, filters, switches, and signal processors to nearly all the major satellite prime contractors and many government space agencies.
At press time, shares of Com DEV were up 2.9% to $4.28.
At Cantech Letter we prize independent journalism like you do. And we don't care for paywalls and popups and all that noise That's why we need your support. If you value getting your daily information from the experts, won't you help us? No donation is too small.
Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.
Ahead of the company's first quarter results, Beacon analyst Russell Stanley thinks Ascend Wellness (Ascend Wellness Stock Quote, Chart, News,… [Read More]
Following the company's fourth quarter results, Paradigm Capital analyst Daniel Rosenberg has cut his price target on Snipp Interactive (Snipp… [Read More]
Following the company's first quarter results, Roth MKM analyst Chip Moore remains neutral on Generac Holdings (Generac Holdings Stock Quote,… [Read More]