NEW YORK (TheStreet) -- Shares of FleetMatics Group (FLTX) are gaining by 2.88% to $41.81 in pre-market trading on Wednesday morning, following a rating upgrade to "overweight" from "sector weight" at Pacific Crest.
The firm has set a $54 price target on the mobile workforce solutions provider's stock.
The rating change comes as the firm believes FleetMatics has "plenty of solid runway for growth" and a "positively received management transition" as well as "conservative" earnings guidance for the full year.
"While rising churn has been one of the primary impediments to being more constructive recently (rising churn as a driver of slowing growth has always been, and remains, bear case No. 1 on the stock), we now believe this is well understood by investors and have confidence in FleetMatics' ability to navigate through while still meeting financial targets to the year," the firm said in a note.
Separately, TheStreet Ratings has set a "hold" rating and a score of C+ on Fleetmatics Group stock. The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
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 and reasonable valuation levels. However, as a counter to these strengths, TheStreet Ratings also finds weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: FLTX