Smith Micro Software "buy"

11/16/07 - Morgan Joseph & Co

NEW YORK, November 16 (newratings.com) - Analyst Kevin Dede of Morgan Joseph reiterates his "buy" rating on Smith Micro Software Inc (SMSI). The target price is set to $20.

In a research note published this morning, the analyst mentions that the company has announced a deal with e-frontier to buy the ownership of certain assets for $6 million in cash. The deal is likely to boost Smith Micro Software’s revenues by $7 million in FY08 and implies that Smith Micro Software is interested in building its consumer business, the analyst says. Smith Micro Software’s data-related connectivity revenues are likely to rise sequentially by 20% to $9.6 million in 4Q07, Morgan Joseph adds.