Q: Your thoughts on the latest quarter,I know your not a fan of averaging down but do you think for a 1-2 year hold this company potential to get back to its recent highs.Basically is their also much growth in their future,thanks
5i Research Answer:
The most recent quarter shows a minor deceleration in topline growth (25% vs. 30% in previous quarters). With that said, the business world is anything but certain. No business can only go up and to the right in terms of operating results—some volatility in growth rate is acceptable. We think KITS remains an attractive growth name as long as growth remains healthy and consistently above double digits, on top of improving profitability. We think KITS’s growth story is still early given the company’s large addressable market. Consensus still calls for EPS to more than double next year, and we would be comfortable as buyers. This management team has done it all before and is executing well once again.