UPDATE: Da Davidson Upgrades PAETEC Holding Corp. (PAET) to Buy, Raises Price Target To $4.50
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Price: $5.37 --0%
Rating Summary:
3 Buy, 4 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 20 | Down: 36 | New: 12
Rating Summary:
3 Buy, 4 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 20 | Down: 36 | New: 12
Trade PAET Now!
DA Davidson upgraded shares of PAETEC Holding Corp. (NASDAQ: PAET) today to a Buy rating from their previous rating of Neutral. The firm believes that the their original predictions were too low as current market trends say things are doing good and will continue to improve. They are raising their price target to $4.50.
They comment that a full quarter of the Cavalier Telecom acquisition should add an incremental ~$60 million to the company's Q1 sales. As a result they are raising their Q1 revenue and EBITDA estimates from $477.1 million and $82.2 million to $483.5 million and $85.5 million. Paetec took $10 million in severance in Q4 and laid off an undisclosed number of people at Cavalier, they also expect to achieve $25 million of run-rate synergies in 2011, which the firm believes a majority will be achieved in the first half of the year. They are raising their FY11 and FY12 EPS estimates to ($0.41) and ($0.20) from ($0.45) and ($0.22).
DA Davidson feels that XETA (NASDAQ: XETA) is now positioned for an acquisition. They expect them to file their proxy fro the shareholders votes to be filed in the new few weeks and expect XETA to add $72 million to PAET’s 2011 sales, but notes that these are lower margin revenues.
For more ratings news on PAETEC Holding Corp. click here and for the rating history of PAETEC Holding Corp. click here.
Shares of PAETEC Holding Corp. closed at $3.64 yesterday, with a 52 week range of $3.33-$5.30.
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They comment that a full quarter of the Cavalier Telecom acquisition should add an incremental ~$60 million to the company's Q1 sales. As a result they are raising their Q1 revenue and EBITDA estimates from $477.1 million and $82.2 million to $483.5 million and $85.5 million. Paetec took $10 million in severance in Q4 and laid off an undisclosed number of people at Cavalier, they also expect to achieve $25 million of run-rate synergies in 2011, which the firm believes a majority will be achieved in the first half of the year. They are raising their FY11 and FY12 EPS estimates to ($0.41) and ($0.20) from ($0.45) and ($0.22).
DA Davidson feels that XETA (NASDAQ: XETA) is now positioned for an acquisition. They expect them to file their proxy fro the shareholders votes to be filed in the new few weeks and expect XETA to add $72 million to PAET’s 2011 sales, but notes that these are lower margin revenues.
For more ratings news on PAETEC Holding Corp. click here and for the rating history of PAETEC Holding Corp. click here.
Shares of PAETEC Holding Corp. closed at $3.64 yesterday, with a 52 week range of $3.33-$5.30.
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