Needham & Company Maintains a 'Buy' on Globecomm Systems (GCOM); Disappointing Outlook, But Shares Still Inexpensive
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Price: $13.14 -0.45%
Rating Summary:
2 Buy, 0 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Rating Summary:
2 Buy, 0 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Trade GCOM Now!
Needham & Company maintains a 'Buy' on Globecomm Systems (NASDAQ: GCOM) price target of $13.00 (from $15.00).
Analyst, Richard Valera, said, "Following a record F2012 year for revenue and EBITDA, Globecomm faces numerous headwinds in F2013 (e.g., lower Iraq/Afghanistan revenue, sluggish DoD/Government procurement and less low-margin, pass-through contract revenue) that are likely to result in it being a down year for revenue (or flat excluding revenue from the pass-through contract) and earnings and a flattish year for EBITDA. We expect these headwinds to more than offset expected growth from several of the company’s Enterprise, Wireless and Maritime segments and to make for unexciting comparisons for most of the year. Notwithstanding these likely uninspiring top line dynamics, in our view the shares remain inexpensive at ~4.5x F13E EBITDA, and we see a reasonable likelihood of the company using its healthy balance sheet to execute an accretive acquisition."
FY13 EPS estimate lowered from $0.85 to $0.70. Revenue estimates lowered from $389M to $350M.
For an analyst ratings summary and ratings history on Globecomm Systems click here. For more ratings news on Globecomm Systems click here.
Shares of Globecomm Systems closed at $11.09 yesterday, with a 52 week range of $9.44-$16.00.
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Analyst, Richard Valera, said, "Following a record F2012 year for revenue and EBITDA, Globecomm faces numerous headwinds in F2013 (e.g., lower Iraq/Afghanistan revenue, sluggish DoD/Government procurement and less low-margin, pass-through contract revenue) that are likely to result in it being a down year for revenue (or flat excluding revenue from the pass-through contract) and earnings and a flattish year for EBITDA. We expect these headwinds to more than offset expected growth from several of the company’s Enterprise, Wireless and Maritime segments and to make for unexciting comparisons for most of the year. Notwithstanding these likely uninspiring top line dynamics, in our view the shares remain inexpensive at ~4.5x F13E EBITDA, and we see a reasonable likelihood of the company using its healthy balance sheet to execute an accretive acquisition."
FY13 EPS estimate lowered from $0.85 to $0.70. Revenue estimates lowered from $389M to $350M.
For an analyst ratings summary and ratings history on Globecomm Systems click here. For more ratings news on Globecomm Systems click here.
Shares of Globecomm Systems closed at $11.09 yesterday, with a 52 week range of $9.44-$16.00.
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