Telematics group Trakm8 (TRAK) is growing fast thanks to soaring demand from fleet managers and insurers keen to track vehicles. Blistering organic growth is being supplemented with savvy acquisitions, while products being developed around the vehicle data Trakm8 is collecting could create significant value for shareholders.
IC TIP:
Buy
at
207p
Tip style
Growth
Risk rating
High
Timescale
Medium Term
Bull points
- Stellar sales and profit growth
- Recurring revenues are rising
- Undemanding share rating
- Prospects boosted by acquisitions
Bear points
- Director sales
AA, Direct Line and other insurers use Trakm8's vehicle-tracking products and services to evaluate drivers' behaviour and inform their premiums. Meanwhile, fleet managers such as Saint Gobain install the group's devices in cars and trucks to measure emissions and ensure economical driving - lowering costs, boosting efficiency and improving security.