NEW YORK (TheStreet) -- The charts of Fleetmatics Group (FLTX) look great and we have a price target of $74. The company is a provider of fleet management solutions delivered as software-as-a-service (SaaS).
Everything is heading in the right direction in this chart, above, of FLTX. The chart looks great. Prices are rising, the On-Balance-Volume (OBV) line is rising, the moving averages are rising and the Moving Average Convergence Divergence (MACD) oscillator is bullish.
In this chart of FLTX, above, we have rising prices, a rising OBV line, a rising 40-week moving average and a bullish MACD oscillator. Also, there are no bearish divergences between prices and indicators like the momentum study.
This point and figure chart, above, gives us a price target of $74 for FLTX. A sell-stop at $55 should be fine for now.
TheStreet Ratings team rates FLEETMATICS GROUP PLC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
We rate FLEETMATICS GROUP PLC (FLTX) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, increase in net income and good cash flow from operations. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 17.3%. Since the same quarter one year prior, revenues rose by 21.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- FLTX's debt-to-equity ratio is very low at 0.08 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.21, which clearly demonstrates the ability to cover short-term cash needs.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Software industry and the overall market, FLEETMATICS GROUP PLC's return on equity exceeds that of both the industry average and the S&P 500.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Software industry average. The net income increased by 7.6% when compared to the same quarter one year prior, going from $8.20 million to $8.82 million.
- Net operating cash flow has significantly increased by 120.02% to $30.08 million when compared to the same quarter last year. In addition, FLEETMATICS GROUP PLC has also vastly surpassed the industry average cash flow growth rate of -10.48%.
- You can view the full analysis from the report here: FLTX
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.