Cellebrite: Mobile Forensics Leadership At A Compelling Valuation

Fundamental Options 1.87K Followers Follow Summary Cellebrite offers ~90% recurring revenue and 117% net retention, anchored by mobile forensics leadership and new growth levers. Cellebrite is rated 'Buy' at ~$12, with a Fair Value estimate of $17.3, reflecting ~44% potential upside and a strong GARP profile. I see a narrow moat based on their leadership in mobile forensics, robust rule of X score, and cross-selling opportunities. Risks include quantum disruption, geopolitical exposure in Israel, and device maker advances; conservative scenarios suggest the current valuation is fair. Alphotographic/iStock via Getty Images Investment Thesis I like software companies for their GARP (Growth-At-a-Reasonable-Price) potential. They usually combine high growth (although not as significant as for semiconductors) with recurrent revenues (meaning more predictability than for semiconductors). The problem is that the market knows that and these This article was written by Fundamental Options 1.87K Followers Follow "Fundamental Options" would be the title of my investing style, because I combine fundamental analysis with the power of options. I use Fundamental Analysis to quantitatively and qualitatively assess individual stocks and ETFs, and I pursue various strategies: Income oriented, especially BDCs, but also Utilities; Growth At A Reasonable Price, especially Tech, having a background in Software Development; Deep Value, based on Discounted Cash Flow and / or other industry specific valuation methods; Dividend Aristocrats.While I usually invest in stocks for long-term, I also have 20-25 strategies involving options that I use for various purposes: hedging stocks; bullish stock / ETF substitutes with improved risk / reward; neutral trades; trading volatility; earnings-related trades.Teaching is another passion of mine, I used to be a formal on non-formal teacher or coach in different areas of life, including authoring of a free local investing newsletter in the last years. Analyst’s Disclosure: I/we have a beneficial long position in the shares of CLBT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.