Needham & Company Maintains a 'Buy' on Comtech Telecom (CMTL) on Valuation; Mixed 3QF11 Results as Satellite Outlook Further Moderated
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Price: $1.76 --0%
Rating Summary:
7 Buy, 5 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
7 Buy, 5 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company maintains a 'Buy' on Comtech Telecom (NASDAQ: CMTL), PT lowered from $33 to $28.
Needham analyst says, "Comtech’s 3QF11 was disappointing at the margin with respect to the outlook for its satellite earth station business and the airtime for its BFT/MTS business. However, as we recalibrate our valuation for a lower “core” EBITDA estimate (now $68MM vs. $72-73MM before), but also adjust for a lower share count and the significantly lower stock price, the EV/”core” EBITDA multiple of 3.7x remains well below peers, making it tough to downgrade at current levels. That said, we are wary of the potential for CMTL to make a large acquisition at a substantially higher multiple than its own (we think EMS Tech (Nasdaq: ELMG)(Hold) is a prime candidate), which could put near-term pressure on the shares if it were to occur."
For more ratings news on Comtech Telecom click here and for the rating history of Comtech Telecom click here.
Shares of Comtech Telecom closed at $24.24 yesterday.
Needham analyst says, "Comtech’s 3QF11 was disappointing at the margin with respect to the outlook for its satellite earth station business and the airtime for its BFT/MTS business. However, as we recalibrate our valuation for a lower “core” EBITDA estimate (now $68MM vs. $72-73MM before), but also adjust for a lower share count and the significantly lower stock price, the EV/”core” EBITDA multiple of 3.7x remains well below peers, making it tough to downgrade at current levels. That said, we are wary of the potential for CMTL to make a large acquisition at a substantially higher multiple than its own (we think EMS Tech (Nasdaq: ELMG)(Hold) is a prime candidate), which could put near-term pressure on the shares if it were to occur."
For more ratings news on Comtech Telecom click here and for the rating history of Comtech Telecom click here.
Shares of Comtech Telecom closed at $24.24 yesterday.
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