Barclays Reiterates an 'Overweight' on Ceragon Networks (CRNT); Weak Macro and India Outlook to Hit 2012

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CRNT Hot Sheet

Rating Summary:
7 Buy, 3 Hold, 0 Sell

Rating Trend:

Up

Today's Overall Ratings:
Up: 19 | Down: 16 | New: 82

Barclays reiterates an 'Overweight' on Ceragon Networks (NASDAQ: CRNT) price target lowered from $15 to $11.

Barclays analyst says, "CRNT posted strong 3Q11 results overshadowed by its forward guidance. 4Q revs are expected to be $116-121mn and GM should be up slightly with opex flat as the integration of Nera concludes. However, CRNT expects revs growth of only 10-12% in 2012, well below its prior 20-25% target. With its target model now requiring quarterly revs of $150mn, we reduce FY2012e revs to $500mn from $545mn and non-GAAP to $0.60 from $1.08. With the stock off 12% intraday (vs. a flat overall market), and fundamental demand for mobile backhaul still intact we think the damage has been done and reiterate our rating, though with a reduced PT based on 12x average EPS of 2012e and 2013e." (Barclays lowers FY12 EPS estimate from $0.17 to $0.02 and FY13 from $1.08 to $0.60)

For an analyst ratings summary and ratings history on Ceragon Networks click here. For more ratings news on Ceragon Networks click here.

Shares of Ceragon Networks closed at $8.57 yesterday, with a 52 week range of $8.11-$14.34.

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