**SWIR ($23~$26) stock leaps on strong earnings
Thursday January 29, 2:58 pm ET
(Figures in U.S. dollars unless noted)
TORONTO, Jan 29 (Reuters) - Sierra Wireless Inc. (Toronto:SW.TO - News; NasdaqNM:SWIR - News) shares jumped more than 14 percent on Thursday as stronger than expected fourth-quarter results from the wireless modem maker prompted analysts to raise ratings and price targets.
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Shares of the Vancouver, British Columbia-based firm rose $3.17 to $25.65 on Nasdaq on a volume of more than 3.7 million. In Toronto the stock rose C$4.42 to C$34.15.
National Bank Financial analyst Deepak Chopra raised his rating on the stock to "sector perform" from "underperform" and his target price to $23 from $16.50.
"Going forward, the company indicated that demand was very brisk and that inventory remains very low or nearly nonexistent in its channels," Chopra said in a research note.
Sierra reported fourth-quarter net income of $1.9 million, or 8 cents a share, on revenues of $34.6 million. Analysts had expected an adjusted profit of 6 Canadian cents a share, on revenues of $31.55 million, according to Reuters Research, a unit of Reuters Group Plc.
Sierra also said it expected first-quarter 2004 revenues of $35 million to $37 million and earnings per share of about 6 cents. Analysts had expected a first-quarter profit forecast of 6 cents a share on revenue of $29.84 million.
"Sierra reported good Q4 results that beat our top and bottom line expectations and delivered forward guidance that is in line with our expectations. We are lifting our target price to C$29.00 (from C$23)," Scotia Capital analyst Gus Papageorgiou said a note to clients.
"We continue to believe Sierra's main wireless modem business will do well...however, at current valuation levels we believe the shares are fairly valued," he added. Scotia has the stock rated "2-sector perform, high risk".
($1=$1.33 Canadian) |
