Investors have quickly locked onto the positive signals coming from vehicle tracking and fleet management company MiX Telematics. The share price has more than doubled since touching a low of 292c in May. At current levels the market rating might be deemed a little rich. But MiX seems quite capable of delivering on CEO Stefan Joselowitz’s ambition of growing subscription revenue at a double-digit pace. MiX’s recent quarterly results issued guidance for the full financial year to end-March 2018 of subscription revenue up 14.5%, which would drive total revenue to about R1.7bn. Adjusted earnings were pencilled in at between 22c/share and 23.5c/share, putting MiX on a forward multiple of about 25 times. There might be a suspicion that MiX’s full-year forecasts are a tad conservative. A more immediate third-quarter forecast sets subscription revenue in the range of R362m-R367m, representing growth of 16.5%-18% over the corresponding quarter last year. MiX’s premium market rating is not o...

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