On Track Innovations initiated with "buy" - update

05/28/08 - Feltl & Co

NEW YORK, May 28 (newratings.com) - Analyst Jay M Meier of Feltl & Co initiates coverage of On Track Innovations Ltd (OTIV) with a "buy" rating. The target price is set to $4.25.

In a research note published this morning, the analyst mentions that the company is expected to benefit from the surging demand for smartcards and MRTD’s. On Track Innovations is expected to reach a fundamental inflection point in FY08, with a potential decline in operating costs, the creation of efficiencies and profit margin expansion, driven by the internal restructuring programme and the new supply agreements for card component technologies, the analyst says. The recent weakness in the company’s financials is expected to abate in the near term, Feltl & Co adds.