Barry says Navteq’s valuation is now too high. “Our conviction in the growth prospects for GPS-based navigation systems remains very strong, but, given this move, underlying company valuations now appear stretched,” he writes in a research note.
While we cannot ignore that scarcity value spawns or accelerates M&A interest in Navteq, any further premium valuation would be tough to justify based upon existing fundamentals, and would probably be meaningfully dilutive to any acquirer.
NVT 1-yr chart:
