Sierra Wireless Inc. (SWIR:NSD) Analysts rate with a Strong Buy, $24 target

STA Research
by: STA Research
Sierra Wireless Inc (SW) Stock Analysis:

Based on the Sierra Wireless Inc stock forecasts from 9 analysts, the average analyst target price for Sierra Wireless Inc is CAD 24.05 over the next 12 months. Sierra Wireless Inc’s average analyst rating is Buy . Stock Target Advisor’s own stock analysis of Sierra Wireless Inc is Bearish, which is based on 1 positive signals and 7 negative signals. At the last closing, Sierra Wireless Inc’s stock price was CAD 24.52Sierra Wireless Inc’s stock price has changed by +15.44% over the past week, +17.60% over the past month and +51.08% over the last year.

Sierra Wireless, Inc. and its subsidiaries offer device-to-cloud Internet of Things (IoT) solutions throughout the Americas, Europe, the Middle East, Africa, and Asia Pacific. IoT Solutions and Enterprise Solutions are the two segments in which it operates. OEMs, distributors, value-added resellers, and mobile network operators are among the direct and indirect channels through which the company serves enterprises, industrial companies, and OEMs. The company was founded in 1993 and is based in Richmond, British Columbia, Canada.

Analyst’s Recent Ratings:

 

What we like:

Low debt

The company is less leveraged than its peers and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

 

What we don’t like:

Poor risk-adjusted returns

This company is delivering below median risk-adjusted returns to its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

High volatility

The total returns for this company are volatile and above the median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Negative cash flow

The company had negative total cash flow in the most recent four quarters.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector.

 

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