Ultralife Corporation (NASDAQ: ULBI) serves customers in the government and defense, security, energy, and industrial sectors with products and services ranging from power solutions to communications and electronics systems. The company creates, designs, installs and maintains rechargeable and non-rechargeable batteries, charging systems, communications and electronics systems, custom-engineered systems.
Why should Investors make an Exit?
Valuation Methodology: EV/Sales Multiple Based Relative Valuation
(Analysis by Kalkine Group)
* % Premium/(Discount) is based on our assessment of the company's FY1 trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
ULBI's share price has remained on a bearish trend, fallen 40.29% in the past nine months and is currently leaning close to the lower end of its 52-week range of USD 4.24 to USD 11.78. We have valued the stock using the EV/Sales-based relative valuation methodology and arrived at a target price of USD 4.90.
Considering the significant deterioration in fundamentals, logistics concerns, current valuation, and other technical indicators, we recommend a "Sell" rating on the stock at the closing price of USD 5.41, as of March 09, 2022. Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing.
Three-Year Technical Price Chart (as of March 09, 2022). Source: REFINITIV, Analysis by Kalkine Group
* The reference data in this report has been partly sourced from REFINITIV.
* All forecasted figures and industry information have been taken from REFINITIV.