Piper Jaffray Gives Update On Telvent Git S.A

Piper Jaffray believes IT systems used to measure and monitor natural gas transmission could be the most overlooked growth driver within Telvent's TLVT broad business mix. More advanced IT systems are being installed on existing infrastructure to enhance measurement, monitoring and reporting throughout the natural gas value chain, which presents a $400-$500 million revenue opportunity for Telvent by Piper's estimation. Growth geographically is likely to be balanced until new transmission projects commence. Following recent high-profile contract wins, we believe Telvent is well-positioned to deliver balanced revenue growth across geographies within the natural gas SCADA and system offering. Piper Jaffray believes contract wins within the oil & gas pipeline segment will provide catalysts for TLVT shares over the course of the next 6-12 months. Piper views this segment as a key revenue growth driver over the next 1-2 years, with the potential for high-margin SaaS revenue in 2012/2013. TLVT remains Piper's favorite small cap idea. Piper Jaffray has a $39 PT and Overweight rating on TLVT TLVT closed Tuesday at $28.74