Lantronix : Dutton Associates Announces Investment Opinion: Lantronix Rating of Strong Speculative Buy Maintained By Dutton Associates
06/27/2007| 12:00pm US/Eastern
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Dutton Associates updates its coverage of Lantronix (Nasdaq:LTRX)
maintaining its rating of Strong Speculative Buy with a price target of
$2.50. The 10-page report by Dutton senior analyst David P. Soetebier,
CFA is available at www.jmdutton.com
as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and
other leading financial portals.
Lantronix Inc., with over 70% of its revenues from machine-to-machine
(M2M) sales, offers investors the most leveraged way to participate in
the developing M2M connectivity industry. We expect Lantronix's
growth to accelerate over the intermediate term from the introduction of
multiple products in the past two years, including a number of major
products in just the last five months, including a wireless networking
component (XPort Direct) priced under $20; IntelliBox I/O 2100,
providing fully automated remote device management and control; and
SecureLinx Spider, the industry's first
Internet Protocol (IP)-based KVM (keyboard, video, and mouse) remote
server management solution. In addition, Lantronix entered the remote
product services (RPS) market on May 2, 2007 with ManageLinx and
Lantronix Device Network Architecture (DNA) to enable original equipment
manufacturers and managed service providers to remotely monitor and
service products for customers after the equipment has been deployed.
Lantronix has an experienced management team that we believe can
capitalize on this market potential. Recent quarterly results were below
our estimate, as new product sales did not accelerate as quickly as we
had projected, but we believe this short-term challenge is more than
offset by the longer-term potential. We believe that investors have
failed to value the Company relative to this growth potential.
Consequently, we consider the shares sharply undervalued at the recent
price of $1.29. Our rating is Strong Speculative Buy with a 12-month
target of $2.50.
About Dutton Associates
Dutton Associates is one of the largest independent investment research
firms in the U.S. Its 31 senior analysts are primarily CFAs and have
expertise in many industries. Dutton Associates provides continuing
analyst coverage of over 140 enrolled companies, and its research,
estimates, and ratings are carried in all the major databases serving
institutions and online investors.
The cost of enrollment in our one-year continuing research program is US
$35,000 prepaid for 4 Research Reports, typically published quarterly,
and requisite Research Notes. Dutton Associates received $67,950 from
the Company for 8 Research Reports with coverage commencing on
10/31/2005. We do not accept payment of our fees in company stock. Our
principals and analysts are prohibited from owning or trading in
securities of covered companies. The views expressed in this research
report accurately reflect the analyst's personal views about the subject
securities or issuer. Neither the analyst's compensation nor the
compensation received by us is in any way related to the specific
ratings or views contained in this research report or note. Please read
full disclosures and analyst background at www.jmdutton.com
before investing.
Dutton Associates, LLC.
John M. Dutton, President,
916-941-8119
© Business Wire 2007
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