Needham & Company Maintains a 'Buy' on Anaren (ANEN); N-T Wireless Softness Drives 2QF12 Estimate Trim, But L-T Demand Appears Healthy
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Price: $27.98 --0%
Rating Summary:
0 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
0 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company maintains a 'Buy' on Anaren (NASDAQ: ANEN) price target of $23.00.
Needham analyst says, "Recent checks on Anaren suggest that its Space & Defense business, which is facing well-documented headwinds as it deals with program transitions and a generally sluggish DoD procurement environment, is likely performing largely as expected. With respect to the company’s historically more volatile Wireless business, we believe the medium-to-longer term outlook remains robust, but that some recent (and we think temporary) softness could put pressure on the 2QF12 (C4Q11) outlook relative to our prior expectations. We are trimming our 2Q estimates accordingly, but leaving the remainder of our outlook unchanged. Acknowledging lack of a near-term catalyst, given the low valuation (5.4x our F13 EBITDA estimate), likely improving top and bottom line trends throughout F12, and the attractiveness of ANEN as a potential takeout in a consolidating market, we maintain our rating."
"Given the healthy Wireless backlog entering 1QF12 and modest S&D expectations, we believe 1Q consensus of $43.1MM and $0.28 NG EPS should be achievable. However, given the recent Wireless weakness, we see 2Q consensus of $47.1MM as likely aggressive and are therefore trimming our 2Q estimates to $45.0MM and $0.32 NG EPS from $47.0MM and $0.34 NG. EPS."
For more ratings news on Anaren click here and for the rating history of Anaren click here.
Shares of Anaren closed at $19.41 yesterday.
Needham analyst says, "Recent checks on Anaren suggest that its Space & Defense business, which is facing well-documented headwinds as it deals with program transitions and a generally sluggish DoD procurement environment, is likely performing largely as expected. With respect to the company’s historically more volatile Wireless business, we believe the medium-to-longer term outlook remains robust, but that some recent (and we think temporary) softness could put pressure on the 2QF12 (C4Q11) outlook relative to our prior expectations. We are trimming our 2Q estimates accordingly, but leaving the remainder of our outlook unchanged. Acknowledging lack of a near-term catalyst, given the low valuation (5.4x our F13 EBITDA estimate), likely improving top and bottom line trends throughout F12, and the attractiveness of ANEN as a potential takeout in a consolidating market, we maintain our rating."
"Given the healthy Wireless backlog entering 1QF12 and modest S&D expectations, we believe 1Q consensus of $43.1MM and $0.28 NG EPS should be achievable. However, given the recent Wireless weakness, we see 2Q consensus of $47.1MM as likely aggressive and are therefore trimming our 2Q estimates to $45.0MM and $0.32 NG EPS from $47.0MM and $0.34 NG. EPS."
For more ratings news on Anaren click here and for the rating history of Anaren click here.
Shares of Anaren closed at $19.41 yesterday.
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