Things are about to get interesting for Spectra7 Microsystems (TSXV:SEV), says Cantor Fitzgerald Canada analyst Ralph Garcea.
Last Thursday, Spectra7 reported its fourth quarter and fiscal 2015 results. In the fourth quarter, the company lost $0.03 a share on revenue of $1.6-million, a topline that was down 15.8 per cent from the $1.9-million in revenue the company reported in Q4, 2014.
Garcea notes that the results were essentially in-line with his and the street’s expectations, but says the real story is what is to come for the rest of the year, when virtual reality will begin to become a reality in the marketplace. The analyst says Spectra7’s solution reduces weight and complexity in dramatic fashion, and deliver ultra-high bandwidth, with speeds up to 50Gbps.
In a research update to clients today, Garcea maintained his “Buy” rating and one-year price target of $1.25 on Spectra7 Microsystems, implying a return of 87 per cent at the time of publication.