Brean Murray Raises Price Target on Comverse (CMVT); Expects Relisting on NASDAQ

June 19, 2009 9:07 AM EDT

Brean Murray raises price target on Comverse (OTC: CMVT) to $10.

Brean analyst says, "Comverse announced an SEC settlement around an options backdating investigation and certain questionable accounting practices. Most importantly, the company faces no monetary liability. Further, it is required to comply with filings by February 8, 2010. This reinforces the earlier disclosed 'early 2010' timeline to be compliant with filing and leads us to believe Comverse has made significant progress around the restatement. Further, we continue to expect we should start seeing filings from Comverse later this year, allowing the company to catch up by next year. Finally, we would also expect CMVT to relist on NASDAQ shortly after becoming compliant with filings, opening the stock to a significantly larger investor base. Trading at 0.7x EV/FY10E total revenue, the stock remains depressed, and we believe the discount will close as investors get more comfortable with the proximity of the filing compliance. We are adjusting our price target to $10, or 0.9x EV/FY10E revenue."

Comverse Technology, Inc., through its subsidiary, Comverse, Inc., is a provider of software and systems enabling network-based multimedia enhanced communication and billing services.

Related Categories

Analyst Comments

Stocks Mentioned

Related Entities

• Brean Murray Carret & Co.

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?