We upgrade our recommendation for Brightpoint Inc. (CELL) to Outperform, following its fourth quarter of 2010 financial results, well above the Zacks Consensus Estimates.
Significant growth of 3G smartphones throughout the world helped Brightpoint to manage a record-high mobile device in the reported quarter. Most importantly, almost 82% of devices are managed through the company’s high-margin Logistic Services. According to our view, business fundamentals of Brightpoint remain intriguing primarily due to growing global demand for 3G smartphones.
We believe newly won distribution agreements together with effective debt and cost control strategies initiated in 2009 will pave the way for Brightpoint’s future earnings growth. We also believe that recent acquisition of Touchstone Wireless will be a long-term positive for Brightpoint. The company will offer innovative supply chain management system with product recycling.
BRIGHTPOINT INC (CELL): Free Stock Analysis Report
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