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Oscar Gruss Downgrades Alvarion Ltd. (ALVR) to Hold; Cautious Outlook

November 5, 2009 8:51 AM EST
ALVR Hot Sheet
Rating Summary:
    0 Buy, 2 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 24 | Down: 13 | New: 29
Oscar Gruss downgrades Alvarion Ltd. (Nasdaq: ALVR) from Buy to Hold. Price target lowered from $6 to $5.

Oscar analyst says, "ALVR reported revenues and earnings above street’s. However, Company’s guidance fell short of expectations mirroring a more cautious outlook on growth into next year. We are downgrading our rating and target price to HOLD and $5.00 given the company’s hesitant outlook. This reflects further regulatory delays, competitive pressures from Chinese players and credit constraints hindering WiMAX growth...We believe the Company’s pure-play strategy positions Alvarion to capture meaningful opportunities once hesitation dissipates. Until then, we are taking a neutral stance awaiting for more enabling/success factors to come together. Our $5.00 price target reflects EV/Sales ratios of 1.0x and 0.8x for 2009 and 2010, respectively, inline with peers."

To see more analyst ratings on ALVR Click Here.

Alvarion Ltd. supplies top-tier carriers, Internet service providers (ISPs), and private network operators with solutions based on the Worldwide Interoperability for Microwave Access (WiMAX) standard, as well as other wireless broadband solutions.

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