Brightpoint Inc. (NASDAQ: CELL) is being called a winner now that AT&T Inc. (NYSE: T) has dropped its planned acquisition of T-Mobile. Canaccord Genuity is reiterating its “Buy” rating and its $14.00 price target objective after a $9.14 close on Monday.
The distributor for mobile communications devices should see “increased visibility into its logistics business for 2012 as T-Mobile is a significant forward- and reverse-logistics customer.”
The research noted, “Further, we believe an increasing mix of smartphones globally should increase opportunities for Brightpoint’s logistics services and raise ASPs in the company’s distribution business, and both should increase gross profit dollars.”
The biggest issue is that the associated overhang on this stock should dissipate as T-Mobile is a significant customer for Brightpoint, while AT&T is NOT a customer. This overhang has pressured Brightpoint shares since March.
Today’s research noted that the business loss would have been $0.10 to 0.13 off of the earnings per share starting in 2013. Now it should win from the increasing mix of smartphones and the firm’s checks indicate solid global smartphone sales despite specific struggles by RIM and HTC.
JON C. OGG
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