Ceragon Networks (CRNT) Likely to Resist $2.80/Share Takeover Offer from Aviat - Needham & Company

Needham & Company analyst Alex Henderson reiterated a Buy rating and $5.25 price target on Ceragon Networks (NASDAQ: CRNT), and thinks the company likely resists the $2.80/share takeover offer from Aviat.

The analyst commented, "CRNT has been halved from its 52-week high of $4.33 to $2.09, and now trades at 0.4x EV/S. We think the company is poised to return to profitability and has a strong portfolio of new products in the pipeline including 100G wireless and substantial new software capabilities. This makes for an opportune time for Aviat to make a run at Ceragon, in our view. We believe CRNT's $183 million market cap makes it vulnerable to Aviat at $283 million, which has held up better due to success in the US market and expectations for rural broadband. While we have long believed a merger between these two should happen, we think Aviat's hostile offer is too low at 0.7x EV/S on our CY23 est., and doubt Ceragon will accept it as is. We do not think Ceragon will resist being put in play and suspect the board will start a sale process."

For an analyst ratings summary and ratings history on Ceragon Networks click here. For more ratings news on Ceragon Networks click here.

Shares of Ceragon Networks closed at $2.09 yesterday.

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