MTI benefits from strong growth dynamics across its business segments. We are forecasting 21% EPS CAGR over the 3 years 2018-2020e. In this report, we examine some of the growth drivers. These include structural demand growth in wireless networks, water conservation demands in irrigation, and new contract wins in the defence/security and consulting businesses.Full report is available via Capital Network website
During the last week, the company has made two significant announcements:
The company came into being in its current form via the August 2018 merger of MTI Wireless Edge with MTI Computers, with Moni Borovitz playing a leading role in delivering the merger.
In this report, we present a reminder of the key dynamics of the merger. We note that since the merger, the share price has yet to stabilise and we believe that the buyback may be helpful in this regard.
MTI Wireless Edge Limited (LON:MWE) is a world leader in developing and manufacturing high quality and cost effective antenna solutions for commercial and military applications, as well as control systems for remotely operated smart irrigation systems. The company has achieved strong growth in recent years, with a three-year revenue compounded annualises growth rate (CAGR) of 22% and an earnings per share (EPS) CAGR of 70%. These dynamics have supported a share price increase of 170% over the three years.