Freedom Broker moves Ituran to ‘hold’ amid strong YTD gains

Freedom Broker now recommends holding shares of Israel’s Ituran, a small-cap company listed in the U.S. that specializes in satellite vehicle tracking. The catalyst was an upgrade to the target price amid a nearly 27% gain in Ituran since the start of the year. Freedom retains its overall positive outlook on the company.

In a note seen by OnInvest, Freedom Broker has changed its recommendation on Ituran from “buy” to “hold,” while raising its target price by 11% to $43 per share — 10% above the stock’s closing price yesterday, March 4.

“The rating change is purely due to short-term market movements ahead of the 2024 earnings report and the stock's strong rally. From a long-term perspective, we remain optimistic about Ituran,” said Sergey Glinyanov, senior analyst at Freedom Finance Global.

Ituran stock has climbed nearly 27% year to date to $39.52 per share currently, with a high of $43.91 per share on February 26. That same day, the company reported a 5% revenue increase in 2024 to a record $336.3 million, alongside a 6.5% rise in subscribers to 2.4 million.

Freedom Broker’s valuation is currently the lowest among analysts, according to MarketWatch. Barclays, the only other major firm covering Ituran, raised its target price by nearly 43% to $50 per share and reiterated its “buy” call on February 27, the day after Ituran’s earnings, according to Benzinga.

Ituran specializes in satellite-based vehicle tracking. The company helps customers to locate stolen cars, insurance companies to monitor driver behavior, and vehicles to exchange information with one another about direction, speed, sudden braking, and more. It operates on a subscription model.

In 2025, Ituran guides for subscriber growth of 7-8%, in line with the increases in 2022 and 2023 — years Freedom Broker describes as strong for the company.

One key growth driver is rising vehicle theft in Israel, Ituran’s home market.“There’s no doubt: the higher the levels of crime and violence, the greater the demand for our services,” said Eyal Sheratzky, Ituran’s co-CEO, in an exclusive interview with OnInvest.

Another potential driver is a forthcoming agreement with a Latin American bank, similar to Ituran’s existing partnership with Spain’s Santander. It allows bank customers who install an Ituran tracker to get approved for auto loans faster and at better interest rates.