BWS Financial Initiating Coverage on AboveNet (ABVT) with a Buy
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BWS Financial initiating coverage on AboveNet (Nasdaq: ABVT) with a Buy rating. Price target $120.
BWS analyst says, "ABVT is an old story with a new name and a business model that has started to produce adjusted EBITDA margin over 40%. ABVT has expanded their customer base beyond carriers. Long-term contracts of three to five years provide clarity for the Company in hitting revenue guidance numbers. The demand for bandwidth has not shown any signs of slowing down to suggest ABVT’s business would decline. The Company should be successful in signing new customers in the coming year. ABVT provides a service that is unscathed by the economic softness. ABVT is not planning to make significant capital expenditures to put the Company in a leveraged scenario. The Company has a net cash position and is expected to generate free cash flow this year. Management asserted being conservative with guidance. We believe this poses as additional upside to the stock and our earnings estimate."
To see more analyst ratings on ABVT Click Here.
AboveNet, Inc. (AboveNet) provides high bandwidth connectivity solutions primarily to corporate enterprise clients and communication carriers in the United States and the United Kingdom.
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