First Analysis reiterates Strong Buy on Alarm.com after meeting management
First Analysis analyst Howard Smith reiterated a Strong Buy rating and $75 price target on Alarm.com after meeting with CFO Steve Valenzuela and VP Investor Relations David Trone. The analyst said the meetings reinforced his confidence in "the company leveraging its leadership position in the wireless interactive security market to maintain its current momentum, which should enable above-market returns for shareholders." He added that management noted that its preliminary FY20 outlook for total revenue "essentially endorses the prior consensus 13.7% growth in SaaS & License revenue, which is modestly above what the prior-year consensus growth expectation was heading into 2019." Smith also highlighted that management discussed multiple other potential growth catalysts, including stabilizing lending standards for Alarm.com's larger accounts, improving take rates of video services and analytics, and transitioning ADT's legacy subscribers to interactive, among others.