Top broker named this under-the-radar tech company a buy

Foster stockbroking has slapped a buy recommendation on New York City-based moving logistics company Updater Inc (ASX: UPD) with a price target range of $1.70 to $3.14.

Updater Inc develop technology to improve relocation processes, with the web-based Mover Product assisting US households to manage their moving-related logistics.

Updater was down 5.2% to $1.16 at the time of writing, off the back of the March 29 release of its 2017 annual report, highlighting the 287% increase in revenue to $US2.2 million reported in its preliminary results on February 28 and the acquisition of two leading software companies – IGC Software and Asset Controls Inc.

Foster named the ramp up of Updater’s Business Products, 2018 calendar revenue growth forecasts and contracts with new business partners as the reasons behind its buy recommendation, as Updater anticipates the launch of Paid Programs – a next generation relocation platform – to drive second-half revenue in CY18.

Foster has a 40% risk factor on the stock, but say the Business Products focus and Paid Programs launch are among the company’s “critical opportunities to de-risk the business”.

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Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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