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Needham & Company Lowers Numbers on Aviat Networks (AVNW), Keeps 'Buy' Rating

May 2, 2013 8:31 AM EDT Send to a Friend
Get Alerts AVNW Hot Sheet
Price: $1.56 -0.64%

Rating Summary:
    0 Buy, 2 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 24 | Down: 14 | New: 52
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Needham & Company cut its price target on Aviat Networks (NASDAQ: AVNW) from $4.50 to $3.50 following mixed Q3 results and light guidance. The firm maintained a Buy rating.

Analyst Richard Valera comments, "For the last several quarters AVNW has been outperforming its microwave pure-play peers, delivering solid bookings, y/y growth and solid profitability. However, with an outlook that appears increasingly challenging in the short term – leading to disappointing guidance for 4QF13, AVNW is increasingly looking like the best house in a bad neighborhood."

He continued, "While it sounds like it could take multiple quarters to see revenue reacceleration, we're reluctant to downgrade the shares give the company’s strong cash position ($1.33 net cash per share), profitability and relatively solid execution. We maintain an admittedly tepid Buy rating for patient investors, while trimming our PT to $3.50 (was $4.50), equal to ~0.3x EV/F13E revs."

The firm cut FY 2013 EPS from $0.27 to $0.19 and FY 2014 EPS from $0.31 to $0.21.

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

Shares of Aviat Networks closed at $2.97 yesterday.




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