伊图兰定位与控制有限公司（ITRN）：强劲的执行表现

Strong Execution ITRN delivered 2% y/y revenue growth, 7% in cc, whichcompares with our 6% growth estimate. EPS beat owing tobelow the line items. FY25 guidance implies an acceleration insubscriber adds and management commentary was positiveon expansion of OEM agreements. Reiterate OW and $50 PT. ITRNOVERWEIGHTUnchanged Price TargetUSD 50.00Unchanged What happened.Adjusted revenues growth of 7% y/y was slightly higher than our 6% growthestimate. Margin improved y/y and EPS was impacted by a lower tax rate vs. our estimate.Management increased guidance for subscriber growth to 220k-240k net adds in 2025 up from~180k-200k, which reflects 9.6% y/y growth at the midpoint. The increased guide is due to thedeal signed with OEM Stellantis under which ITRN will provide telematic services. Price (27-May-25)USD 39.24Potential Upside/Downside+27.4%Source: Bloomberg, Barclays Research What to do with the shares.ITRN has been delivering strong execution over the past severalquarters, and guidance for FY25 implies that the solid momentum will continue throughout theyear. The shares are up 42% LTM and 19% YTD. This compares with the Nasdaq, which is up 13%over the last year and flat YTD. ITRN trades on 11.9x FY26E PE and 1.6x FY26E EV/Sales, which westill see as undemanding considering the solid execution and the stickiness of the business. Key takeaways:Subscriber growth:Management highlighted strong demand in Israel (55% oftotal revenues) driven by high cartheftrates and new subscribers for UBI while ITRN'smotorcycle product is gaining traction across geographies in South America and drivingincreasing TAM. This quarter included an initial first stage contribution of subs from Stellantis,and ITRN sees the deal as an opportunity for further collaboration with the OEM potentiallyexpanding into new geographies andofferingadditional services. Management commentedthat it remained in discussions with several major OEMs.Profitability:Operating profit grew10% y/y, and margin improved 150bps y/y. EBITDA was up 4% vs. 1Q24. Key numbers:Total revenues growth y/y was 2%, or 7% in cc. Total subscribers grew by 217ky/y, or 9.5%. On a sequential basis, subscribers were up 99k . 1Q sales of $86.5m were driven byServices revenues (up 2% y/y, or +9% in cc, and 72% of total revenues) and Product revenues(up 1% y/y, +3% in cc, and 28% of total revenues). Gross margin was up 210bps, due to higherprofitability in the products segment. Operating margin improved by 150bps y/y despite a 4%y/y increase in operating expenses. EBITDA of $23.3m was up 4% y/y. Non-GAAP net incomeincreased 12% vs. 1Q24, or 20% in cc. ITRN has a net cash position of $76m. Source: IDCLink to Barclays Live for interactive charting U.S. Emerging Technologies Tavy Rosner+972 3 623 8628tavy.rosner@barclays.comBarclays, UK Changes to our estimates:We make no significant changes to our modelafteradjusting forearnings and the new guidance. Our increase in subs for 2025 is for the most partoffsetby theFX impact on reported revenues while the higher base of subsliftsour FY26 revenues by 1%. Barclays Capital Inc. and/or one of itsaffiliatesdoes and seeks to do business with companiescovered in its research reports. As a result, investors should be aware that the firm may have aconflict of interest that couldaffectthe objectivity of this report. Investors should consider thisreport as only a single factor in making their investment decision. This research report has been prepared in whole or in part by equity research analysts basedoutside the US who are not registered/qualified as research analysts with FINRA. Please see analyst certifications and important disclosures beginning on page 7.Completed: 28-May-25, 17:50 GMTReleased: 28-May-25, 17:54 GMTRestricted - External Results summary and financials Analyst(s) Certification(s):I, Tavy Rosner, hereby certify (1) that the views expressed in this research report accurately reflect my personal views about any or all of the subject securities or issuers referred to in this research report and (2) no part of my compensation was, is or will be directly or indirectly related to the specificrecommendations or views expressed in this research report. Important Disclosures: Barclays Research is produced by the Investment Bank of Barclays Bank PLC and itsaffiliates(collectively and each individually, "Barclays"). Allauthors contributing to this research report are Research Analysts unless otherwise indicated. The publication date at the top of the report reflects thelocal time where the report was produced and maydifferfrom the release date provided in GMT. Availability of Disclosures: Where any companies are the subject of this research report, for current important disclosures regarding those companies please refer to https://publicresearch.barclays.com or alternatively send a written request to: Barclays Research Compliance, 745 Seventh Avenue, 13th Floor, New York, NY10019 or call +1-212-526-1072. The analysts res