MobileIron is reportedly exploring options including potentially selling the company. The stock is down about 3% in pre-market on Monday, after closing 12% higher on Friday.
MobileIron (MOBL), the infrastructure software provider, is exploring potential sale options and is working with a financial adviser, Bloomberg reported citing people familiar with the matter. The sale deliberations are not final and the company might choose to remain independent, according to the report.
On July 30, MobileIron reported 2Q adjusted earnings of $0.04 per share, topping analysts’ estimates of a loss of $0.03 per share. Revenues increased by 15.8% to $58.9 million year-over-year, surpassing the consensus estimate of around $50 million. Remote working options amid the pandemic helped boost the demand for security services. (See MOBL stock analysis on TipRanks).
Following 2Q results, Northland Securities analyst Nehal Chokshi raised the stock’s price target to $6 ($10.7% downside potential) from $5, while reiterating a Hold rating. In a note to investors, Chokshi said that the end of perpetual license sales will boost MobileIron’s transition to higher annual recurring revenue (or ARR) per seat subscriptions. The analyst expects 10% ARR growth through 2021.
Currently, the Street is sidelined on the stock. The Hold analyst consensus is based on 1 Buy, 1 Hold and 1 Sell. The average price target of $6.08 implies downside potential of about 9.5%. Shares are up 38% year to date.
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