Please ensure Javascript is enabled for purposes of website accessibility

Why Ondas Holdings Stock Jumped on Monday

By Daniel Sparks - Updated Feb 16, 2021 at 11:21AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The network technology company is getting some analyst love today.

What happened

Shares of communication and network company Ondas Holdings (ONDS 5.42%) jumped sharply on Monday. The stock soared as much as 23.8% and was up about 19% as of 10:45 a.m. EST.

The tech stock's gain was driven by an analyst's move to initiate coverage of the stock with an outperform rating and a big 12-month price target.

A chart showing a stock price rising.

Image source: Getty Images.

So what

On Tuesday morning, Northland Securities analyst Michael Latimore set a $22 12-month price target for Ondas stock. Highlighting how significant this target is, it represents 40% upside from where the stock is trading now -- even after its big pop today.

Supporting his bullish view for the stock, Latimore says there's a large market opportunity for the company in the railroad business as U.S. railroads install broadband networks. 

Now what

Ondas develops a proprietary, software-based wireless broadband technology for industrial markets like the railroads. Earlier this year, Ondas announced its first commercial shipment of its Mercury radio platform for a North American Class 1 rail customer.

In the company's Jan. 5 press release about its shipment, management said mission-critical network operators in industrial markets "are confronting a significant bandwidth gap for their advanced data applications located at the edge of their networks." The company's platform aims to address this problem, creating "a secure, high-capacity, private 'fog' network at the edge to enable these advanced applications with up to 15 times more capacity."

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Ondas Holdings Inc. Stock Quote
Ondas Holdings Inc.
ONDS
$7.19 (5.42%) $0.37

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
330%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/22/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.