Shares of Aliso Viejo’s Smith Micro Software Inc. jumped Friday after an analyst said he expects the stock to double in the next year.
Shares were up nearly 20% before Friday’s close. Smith Micro makes software for cell phones that allows users to download and play music files, among other things.
Smith has been on a tear lately, largely because of a major contract last year with Verizon Wireless, a unit of Verizon Communications Inc.
Verizon accounts for about three-fourths of the company’s sales.
ThinkEquity Partners analyst Anton Wahlman said he expects Smith Micro to get a boost from wireless providers as they roll out new phones to compete with Apple Inc.’s much anticipated iPhone, due out next week.
“We continue to believe Verizon Wireless would like to have an immediate response to the iPhone by AT & T;, and that Smith Micro will be a major beneficiary of this competitive effort,” Wahlman said in a research note.
On average, analysts expect Smith Micro’s sales to more than triple by the year’s end.
At a recent check, the company had a market value of about $440 million.
