Smith Micro (SMSI)

Smith Micro (SMSI - Analyst Report) is a developer of wireless communications software and utility software for multiple OS platforms and phone manufacturers. Although the year 2009 is expected to remain challenging, SMSI will benefit from new PC OEM deal and new carrier wins besides increased adoption of 4G WiMAX connectivity management.

We expect the company to post good results in the second half of 2009 on the basis of new customer wins, strong brand recognition and a robust product pipeline. We believe the company is poised for strong growth driven by the continued strength in Connectivity, albeit the declining consumer spending is likely to be challenging for its consumer business.

We maintain our BUY rating on the stock with our six-month target price of $10.00.