COM DEV’s (COM DEV Stock Quote, Chart, News: TSX:CDV) deal with Harris Corp. is a “game changer” for its exactEarth unit, says Paradigm Capital analyst Daniel Kim.
Yesterday, COM DEV announced that exactEarth and Harris Corporation have formed a strategic alliance to deliver real-time global tracking coverage for maritime vessels. The company said the ship finder deal would broaden its offerings.
“As the recognized satellite AIS industry leader, this announcement further strengthens our commitment to provide best-in-class maritime intelligence solutions to our customers worldwide,” said Peter Mabson, president of exactEarth. “We are thrilled to be able to offer the shortest revisit times and lowest latency for developing true maritime domain awareness. This partnership with Harris will allow us to significantly expand the range of advanced value-added services and information solutions that we can bring to the global maritime market.”
Kim says the deal addresses all the current shortcomings of exactEarth, including achieving zero latency and complete coverage of the 100 Maritime VHF frequency bands.
“This is a game-changer for exactEarth,” says Kim. “The alliance vastly improves CDV’s competitive position, performance level and growth prospects going forward, all at a significantly lower cost and higher coverage than if it attempted to build a similar venture independently.
In a research update to clients today, Kim maintained his “Buy” rating, but increased his one year target price on the stock from $8.50 to $9.50, implying a return of 79% at the time of publication.
Leave a Reply
You must be logged in to post a comment.