POLY

Plantronics, Inc.

TMT


Presented:02/18/2022
Price:$27.35
Cap:$1.17B
Current Price:$39.82
Cap:$1.59B

Presented

Date02/18/2022
Price$27.35
Market Cap$1.17B
Ent Value$2.57B
P/E Ratio20.56x
Book Value$0.25
Div Yield0%
Shares O/S42.78M
Ave Daily Vol334,757
Short Int17.50%

Current

Price$39.82
Market Cap$1.59B
Plantronics, Inc. engages in the design, manufacture, and distribution of headsets, voice, video, and content sharing solutions. It operates through the following segments: Products and Services. The Products segment includes the firm's headsets, voice, and video product lines. The Services segment includes the maintenance support on hardware devices, as well as professional, managed, and cloud services and solutions. The company was founded by Courtney Graham and Keith Larkin in 1961 and is headquartered in Santa Cruz, CA.

Publicly traded companies mentioned herein: Dell Technologies Inc (DELL), HP Inc (HPQ), Lenovo Group Ltd (992 HK), Microsoft Corp (MSFT), Plantronics Inc (POLY), RingCentral Inc (RNG), Zoom Video Communications Inc (ZM)

Highlights

The presenter is long shares of Plantronics Inc (POLY), a $1.2B market cap maker of headsets and video conferencing hardware, as a reopening play on the enterprise market since meetings are now mostly video-enabled. The software side of enterprise video conferencing has been relegated to cloud partners like Zoom, Microsoft Teams, and RingCentral, and POLY has accepted the role as the hardware provider for the space. In addition to the reopening tailwind, he points to compressed gross margins that should normalize, creating an attractive valuation at the current $28 share price, while modeling a path to $60 per share. 

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Idea Discussion

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