Jefferies Cuts Price Target on Comtech Telecom (CMTL) Following 4Q Results and Dividend Risk
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Jefferies maintained a Hold rating on Comtech Telecom (NASDAQ: CMTL), and cut the price target to $11.75 (from $14.00), following the company's 4Q earnings report. quarter revenue hit $152.4 million, slightly below the consensus of $165.3 million. Management cited strong order flow for legacy Comtech product lines and TCS’ products within the Commercial segment. Management also declared a $0.30 dividend for the quarter and reiterated their expectation of $1.20 per share for FY 2017. However, Based on comments on the earnings call and the cash flow discussion for FY 2017, Jefferies believes that there is incremental risk to the dividend going forward.
Analyst George Notter commented, "Comtech reported mixed July quarter results. In light of current valuations versus the peer group, potential merger integration risk, trading liquidity, and some increasing potential for a dividend reduction, we still see the current risk/ reward as balanced."
Shares of Comtech Telecom closed at $11.37 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change, Dividends
Related EntitiesJefferies & Co, Dividend, Earnings, Definitive Agreement
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