BeWhere Holdings has a huge upside, says Mackie Research

BeWhere Holdings (TSXV:BEW) scored a significant client order, one which speaks to the company’s potential traction going forward in the mobile IoT space, says Mackie Research analyst Nikhil Thadani, who in a client update on Tuesday reiterated his “Buy” recommendation for BEW.

Today, BeWhere announced a 20,000 unit order of M-IoT sensors from GPS and connected vehicle tech company Fleet Complete. BeWhere says that Fleet Complete is targeting an un-addressed market in North America, with the two companies looking to do more collaborating in the coming months.

“Overall, this order demonstrates BeWhere’s continuing ability to bring to market innovative solutions, enabling our valued partners to cost-effectively track and monitor a wide array of equipment,” says BeWhere CEO Owen Moore in a press release. “From bulk materials to high-value inventory, our low-power, low-cost M-IoT solution further leverages our partners’ asset tracking abilities.”

Thadani says the agreement represents BEW’s first meaningful cellular order, with likely seven digit hardware revenue and attached ongoing recurring revenue. Moreover, the analyst says that a major catalyst could be upcoming in the form of an agreement with US carrier AT&T.

“We speculate recent social media activity by AT&T could suggest BEW deployment by that carrier’s customers/channels – a major positive catalyst for BEW stock by meaningfully increasing revenue build visibility,” Thadani says.

“This morning, BEW reported Q1 revenue of $535K (+21 per cent q/q). Some opportunities converted into initial Q1 purchase orders. We believe BEW exhibiting q/q revenue growth through 2018 is an important milestone as the company scales revenue,” says the analyst.

Thadani has not given a price target but rather a target range of between $0.90 and $1.30 per share, as he waits for meaningful revenue build visibility from the company during 2018. The analyst’s target range represents a projected return on investment of between 157 and 271 per cent at the time of publication.

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