Bundle of Security Firms Receive Outperform Ratings from Imperial Capital
Find out which top electronic security firms received a favorable rating from Imperial Capital’s Jeff Kessler.
LOS ANGELES – Several electronic security companies gearing up for ISC West 2015 have received mostly favorable ratings from an Imperial Capital analyst.
As security firms prepare for ISC West, Jeff Kessler, managing director of Imperial Capital, rated many companies on his list at Outperform, Benzinga.com reports.
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Kessler expects Allegion (NYSE:ALLE) to exceed growth-rates in its local markets even as revenue falls by 3 percent to 4 percent on currency headwinds. He rates the Ireland-based company at Outperform with a $66 target.
Ascent Capital Group (NASDAQ:ASCMA) has received an Outperform rating with a target of $60 from Kessler. He notes that Ascent Capital Group’s Monitronics alarm unit hasn’t seen a slowdown despite higher competition from cable and telecommunications companies..
Kessler observes that Assa Abloy (OTCMKTS:ASAZY) is spending heavily on new product development to supplement its growth strategy based on acquisitions. The firm’s core business, which is centered on wireless locks and identification systems, is experiencing slow but steady growth, according to Kessler, who maintains an In-Line rating and $29.50 target.
Identiv (NASDAQ:INVE) has completed its 2014 goal of refocusing on cloud and mobile-based identity and authentications technologies. The company “is now better aligned to enhance its current market footprint,” said Kessler, who rates the shares at Outperform with a $14 target.
NICE Systems (NASDAQ:NICE) financial crime and compliance segment, as well as its security business, can each grow at double-digit rates, with widening profit margins, according to Kessler. He rates the company at Outperform with a $65 target.
Nortek (NASDAQ:NTK) is in the midst of a drive to boost efficiency which could result in significant cost savings, according to Kessler. Its “design to value” program could further increase sales and margins. Kessler rates the shares at Outperform with a $99 target.
Tyco Int’l (NYSE:TYC), “continues to be highly selective about what jobs the company accepts,” Kessler says. The firm, which split off its health care and electronics units in 2007, has received an Outperform rating with a $51 target.
Kessler comments that Verint Systems (NASDAQ:VRNT) continues to receive an improving stream of large orders from current and new customers in its customer care and workflow management business. He gives the company an Outperform rating and $70 target.
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Zebra Technologies (NASDAQ:ZBRA) acquisition last year of Motorola Solutions’ Enterprise business could result in significant earnings acceleration over the coming quarters, Kessler says, who maintains an Outperform rating and $98 target.
Kessler adds that although he doesn’t expect any market-moving news from the ISC West show floor, there will be first-rate demonstration booths with knowledgeable sales people present.
ISC West is slated for April 15 through April 17 in Las Vegas.
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