Edison Investment Research - Pointer Telocation Ltd. (894940) Good figures and yet another impressive deal

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Edison Investment Research

Anna Bossong

Good figures and yet another impressive deal

The group has started 2017 well with two significant contracts – a highly prospective one for driver behaviour in NY for ride firms such as Uber and Lyft, followed by a pilot programme for driver safety and distribution costs savings with FEMSA (Coca-Cola’s largest public bottler). A strong performance in these contracts bodes well for future earnings. Pointer has also announced better than expected 2016 operating results, helped by margin-boosting operational leverage, and acquisition of Cielo Telecom in Q4. Management has also issued guidance for over 10% revenue and 20% EBITDA growth this year, which accords with our increased earnings expectations. Helped by this, we have revised our share valuation, which is based on peer multiples, from $8.85 (NIS 33.9) to $10.8 (NIS39.6). This is supported by our DCF valuation of $14.9 (NIS 54.7) per share.

16/03/2017 8 EN

Underlying

Pointer Telocation Ltd.

Pointer Telocation is a provider of mobile resource management (MRM) products and services for the automotive, insurance industries and other mobile tracking markets. Co.'s products segment Cellocator, is focused on the design, development and production of MRM products including: devices for asset tracking; fleet management and security products. MRM. Communication systems contained within Co.'s products and tracking hardware utilize either radio frequency or GPRS/GSM technologies. Co.'s services segment MRM, offers a range of services including inter alia: asset tracking; fleet management services; and stolen vehicle retrieval services.

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IL0010826274 Israel

Provider

Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Analysts

Anna Bossong

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Good figures and yet another impressive deal

Pointer Telocation - New Microsoft AI collaboration

Pointer Telocation - Strong foundations for future growth

Right time, right places

Manx Financial Group - Termination of coverage

musicMagpie - Termination of coverage

Topps Tiles - Accelerating growth through Q125

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