In a research report to clients today, Kim initiated coverage of Siyata Mobile with a “Buy” rating and a one-year price target of $0.70, implying a return of 150 per cent at the time of publication.
Kim says Siyata, a 2011 spinoff of Israeli-based Accel Telecom that develops vehicle-mounted cellular-based communication devices designed for professional fleets, has “massive” market opportunities. In particular, the analyst thinks Push-to-Talk over Cellular implemented on its flagship products will be a killer application that will drive sales.
“Disruptive, best-in-class technology with first-mover advantage, rapid innovation and key asset acquisitions are driving rapid growth for Siyata Mobile (SIM),” says Kim. “Its flagship communication devices provide unparalleled features at one-tenth the price of competitive offerings; therefore, it is rapidly winning new key customers, particularly in its targeted growth markets — North America and Europe. New products and new platforms promise to give the company a competitive edge and deliver long-term growth, addressing a multi-billion-dollar market opportunity.”
The Paradigm analyst notes that Siyata already has a well established distribution channel and has relationships with retailers and tier one operators such as TELUS, Bell, Costco, Best Buy, The Source and Amazon.
Kim believes Siyata will generate EBIDTDA of negative $100,000 on revenue of $12.3-million in fiscal 2016. He expects these numbers will improve to positive EBITDA of $1.7-million on a topline of $20.8-million the following year.
Disclosure: Siyata Mobile is an annual sponsor of Cantech Letter.