H.C. Wainwright analyst Scott Buck maintained a Buy rating on Phunware (PHUN – Research Report) today and set a price target of $1.00.
Scott Buck has given his Buy rating due to a combination of factors related to Phunware’s strategic shift and future growth prospects. Buck notes the company’s recent challenges, such as declining revenue in the third quarter of 2023. However, he sees potential in the company’s shift from hardware to a digital asset ecosystem. This includes PhunToken, PhunCoin, and Phunwallet, which not only could provide a new revenue stream, but also reduces cash burn by eliminating the Lyte hardware business. Buck also acknowledges the company’s cost-cutting measures including the exit from certain real estate obligations as positive steps towards profitability.
In addition, Buck is optimistic about recent contract wins, which he believes will drive incremental revenue growth and serve as a powerful marketing tool. He foresees growth in the company’s software business and anticipates higher gross margins in 2024. Buck also expects the company to require further investment to improve selling capabilities, and suggests that the shares of Phunware are likely to be in greater demand as investors begin to see evidence of a turnaround. He also sees a meaningful opportunity in the hospitality sector, where Phunware’s Smart Hospitality Solution has been successful. Considering these factors, Buck recommends that investors accumulate a position in Phunware given its anticipated favorable operating results in 2024 and 2025, and he sets a price target of $1.00.
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Phunware (PHUN) Company Description:
Phunware, Inc. engages in the development of a Multiscreen-as-a-Service platform, an enterprise cloud platform for mobile. It provides companies the products, solutions, data, and services necessary to engage, manage, and monetize mobile application portfolios and audiences at scale. Its platform also allows for the licensing and creation of category-defining mobile experiences for brands and their application users worldwide. The company was founded by Alan S. Knitowski and Luan Dang in February 2009 and is headquartered in Austin, TX.
Read More on PHUN:
- PHUN Earnings Report this Week: Is It a Buy, Ahead of Earnings?
- Phunware Announces Wind Down of Lyte Technology’s Operations to Reinforce Core Mission
- Phunware Sets Third Quarter 2023 Earnings Call for Thursday, November 9, 2023 at 4:30 PM ET
- Phunware partners with Wailea Beach Resort
- Phunware Partners with Wailea Beach Resort – Marriott, Maui for its Enhanced Smart Hospitality Solution
