Wedbush Morgan Upgrades Neutral Tandem (TNDM) to Buy

Wedbush Morgan upgrades Neutral Tandem (Nasdaq: TNDM) from Hold to Buy. Maintains estimates and $32 price target.

Wedbush analyst says, "Upgrading to BUY from HOLD, as we believe attractive valuation, robust growth, and solid visibility trump potential risks associated with carrier consolidation. With shares off 15% since our recent initiation and trading in-line with its peers despite superior growth, we are buyers at current levels...Concerns over discussions and rumors of carrier consolidation, more than reflected in share price. Recently, the WSJ indicated Level 3 (Nasdaq: LVLT) and Sprint (NYSE: S) were in talks for a long distance JV. Our checks indicate talks are very early and that control could be an issue. While we do not view this likely, we believe some investors fear a potential JV could block Sprint LD from becoming an LD customer, we estimate Sprint has 10-15% of the LD market. Neutral Tandem (NT) indicated it expects revenue from long distance (IXCs/Interexchange Carriers) to be 20% in a couple years. We also believe off and on rumors of a T-Mobile/Sprint merger do not make sense near term given technology differences (GSM, CDMA, iDEN), which has caused Sprint problems."

To see more analyst ratings on TNDM Click Here.

Neutral Tandem, Inc. is a provider of tandem interconnection services to competitive carriers, including wireless, wireline, cable and broadband telephony companies.

You May Also Be Interested In

• UPDATE: Williams Financial Group Upgrades Semtech Corp. (SMTC) to Buy; Check Again...Quarter Was Fairly Strong
• Goldman Sachs Cuts Numbers on Tiffany & Co. (TIF) after Weak Q1, Guidance
• JPMorgan Upgrades Companhia Brasileira de Distrib (CBD) to Neutral

Create E-mail Alert Related Categories

Upgrades

Related Entities

Wedbush Morgan

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?

Follow StreetInsider.com On Twitter