Control4 Has A 'Firm Hand On The Wheel,' Imperial Capital Says In Upgrade

Control4 Corp (NASDAQ: CTRL) stock has lost more than 15 percent since the start of 2018, but one Wall Street analyst said the upside case applies, as the home automation provider's management has a "firm hand on the wheel."

The Analyst

Imperial Capital's Jeff Kessler upgraded Control4's stock rating from In-Line to Outperform with an unchanged $30 price target.

The Thesis

Control4 reported fourth-quarter results in early February. Revenue rose $57.4 million from a year ago to $68.3 million, and EPS rose from 31 cents to 40 cents over the same time period, Kessler said in a Thursday note.

The quarter marked another period of continued growth for the company, which raised its fiscal 2018 guidance, the analyst said. 

Looking forward to the full fiscal year, Control4 expects to increase its revenue from $245 million in fiscal 2017 to a range of $270 to $274 million in 2018, with earnings per share between $1.19 to $1.26.

The encouraging guidance reaffirms Kessler's confidence in the company's ability to improve its margin and revenue growth while simultaneously seeking out new strategic acquisitions, he said. 

Price Action

Shares of Control4 were trading higher by nearly 2 percent at $25.14 at the time of publication Thursday afternoon. 

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Photo courtesy of Control4.