Roth bullish on Smith Micro as AT&T launches upgraded security application

Roth MKM notes that Smith Micro (SMSI) has disclosed that a tier 1 carrier launched its upgraded security application. The firm believes it is AT&T (T) as the company formally launched its Secure Family solution. This is meaningful as it represents the first major push of SafePath into AT&T, which could ultimately translate to a $100M annual recurring opportunity or roughly 25c-30c EPS, Roth notes. This long-awaited launch should drive the initial recovery of Smith’s location-based services, it adds. The firm maintains a Buy rating on Smith Micro shares with a price target of $4.50.