Smith Micro at a Huge Discount

Smith Micro Software, Inc. (SMSI - Analyst Report) is a developer of wireless communications software and utility software for multiple OS platforms. It has significant relationships with several large cellular providers and OEM cell phone manufacturers.

We remain encouraged by the company's recent results, strong brand recognition and robust customer pipeline for 2009. We believe the company is poised for strong growth driven by continued strength in Connectivity and improvement in Multimedia segments. However, we believe the weakening macro environment and declining consumer spending is likely to be challenging for its consumer business.

The stock is currently trading at a huge discount. Our rating remains a BUY with a lower six month target price of $6.00.

Priyanka Poddar contributed to this report.