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BSM Technologies is "increasingly attractive" says Clarus

BSM Technologies

BSM TechnologiesIndustry consolidation is one of many positives happening for BSM Technologies (BSM Technologies Stock Quote, Chart, News: TSX:GPS) right now, says Clarus Securities analyst Noel Atkinson.

Yesterday, Verizon announced it would acquire privately-held Telogisfor appoximately (US) $120 million. The move follows on Verizon’s $612-million pickup of Hughes Telematics in 2012.

Atkinson says there is possibly an immediate move for BSM in the wake of the Telogis deal, in that Telogis signed a major a carrier partnership with AT&T last September, an arrangement the analyst suspects the Verizon deal likely kills. Atkinson says there are many telematics players, but thinks that BSM is one that could win the AT&T business. He believes this is just one of several reasons investors should take a long look at BSM.

“Between industry consolidation, a new activist shareholder (Crescendo Partners), BSM’s rarified position of having sufficient critical mass of subscriber revenue to aggressively compete on hardware pricing for new contracts, the AT&T government opportunity, and BSM nearing completion on major reworks of the hardware and software platforms to finally allow easy integration of existing and future business units, we believe BSM is increasingly attractive,” says Atkinson.

In a research update to clients today, Atkinson maintained his “Buy” rating and one-year price target of $2.00 on BSM Technologies.

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About The Author /

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.
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