Shares of Smith Micro Software Inc., a maker of software for cell phones and other mobile devices, rose Wednesday after an analyst upgraded the stock.
The stock closed up more than 8% on a recent market value of $366 million.
Wedbush Securities LLC analysts Scott Sutherland and Suhail Chandy raised their rating for shares “outperform” from “neutral” and boosted their price target to $12.50 per share, up from a previous target of $11 per share.
The stock was trading at around $10.70 per share on Wedensday.
The analysts said the company should get a boost from what’s called a “PC refresh,” in which consumers and businesses are expected to purchase new computers, 4G network launches and upcoming products.
They said that Smith Micro should report sales at the high end of its guidance.
Earlier this month, Smith Micro projected that it would see 2010 yearly sales of $125 million to $135 million, which would be up 16% to 26% from 2009.
Analysts are expecting an average of $132 million in revenue.
It didn’t give a profit outlook. Analysts are looking for 2010 profits of $28 million, up from an expected profit of $26 million for 2009.
The company’s shares are up 9% since the start of the year.
The company makes software that allows for phones or PCs to connect to the Internet through a wireless service provider’s network.
It also makes security software and software that does “over-the-air” downloads for music.
Customers include Verizon Wireless, a unit of New York’s Verizon Communications Inc., AT&T Inc., and T-Mobile USA Inc., a unit of Germany’s Deutsche Telekom AG, among others.
