Elron's a Buy Opportunity After Stock Sank 21% in Last Month - IBI

Just last week the IBD tech arm invested in Pocared and floated Starling

Elron Electronic Industries (Nasdaq, TASE: ELRN)  has become a Buy opportunity, mainly because its stock sank 21% in the last month, says analyst Noa Weisberg of Israel Brokerage & Investments.

The IDB (TASE: IDBH)  group holding company is now trading at $13.70 per share, despite having a portfolio of companies ripe for opportunities of uncovering value.

Elron focuses on technology holdings. Just last week it announced a $2.3 million investment in the Israeli diagnostics startup Pocared, in exchange for 22.5% of the startup's shares. Pocared is developing kits for real-time diagnostics that could apply not only to medicine but to industry too, says Weisberg, predicting that the startup will have a developed platform in a couple of years.

Also last week, an Elron subsidiary, Starling Advanced Communications, completed its initial offering of shares and warrants on the Tel Aviv Stock Exchange. The offering did not go smoothly, though and Elron was forced to provide $4 million of the $14 million that Starling sought.

Post-IPO Elron owns 36% of Starling, which specializes in antenna systems for communications satellites.

Weisberg repeated a Buy rating for Elron and 12-month price target of $18, which is 31% above its Friday closing point on Nasdaq.

Elron stock