H.C. Wainwright Reiterates Buy Rating on DragonWave (DRWI)

H.C. Wainwright reiterated a Buy rating on DragonWave (NASDAQ: DRWI) with a price target of $3.00. Analyst Kevin Dede raised estimates on improved business.

"Indicative of its new customer wins, DragonWave posted sales of $28.8M in its 1Q15 (May) report back on July 10, up more than 60% sequentially and 17% year over year. The report, whether or not investors are conscious of it, represents a dramatic inflection point reversing the prevailing sequential quarterly declining sales trend that almost forebode the demise of the company as we know it," said Dede.

"We maintain our stance articulated in advance of that earnings report, where we anticipated a resurgence in DragonWave's core business that is expected to continue for the foreseeable future on the heels of greater spending at key network operator customers. We think that business continues to improve as the company had indicated it expected it to back in July; meanwhile, the trading action in DragonWave shares highlight a disconnect significant enough to warrant a call to action, and we reiterate our Buy rating and $3 PT," he added.

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

Shares of DragonWave closed at $1.46 yesterday.

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