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Needham & Company Maintains a 'Buy' on Aviat Networks (AVNW); Metrics Suggest Bottom in Revenue and Cash Burn

February 2, 2012 7:39 AM EST
AVNW Hot Sheet
Rating Summary:
    2 Buy, 1 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 20 | Down: 11 | New: 38
Needham & Company maintains a 'Buy' on Aviat Networks (NASDAQ: AVNW) price target of $3.50.

Analyst, Richard Valera, said, "Aviat delivered solid 2QF12 results relative to guidance on all key metrics--including revenue, gross margin and cash burn—suggesting the business appears to have stabilized after multiple quarters of restructuring, downward revenue revisions and higher cash burn. While the path to higher revenue and gross margins is unlikely to be rapid or linear, given the company’s largely completed restructuring and numerous quarters of positive book:bills, we feel it has the best starting point it has had in some time. As such we maintain our Buy for patient investors."

"F2012 goes to $432MM/$0.02 NG EPS from $441M/$0.02 and F13 goes to $453MM/$0.17 NG EPS from $458MM/$0.20."

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 $2.39 yesterday, with a 52 week range of $1.62-$6.50.


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