Needham & Company Maintains a 'Hold' on Comtech Telecom (CMTL); Strong 1QF12 Results, But Weaker Core Outlook; Takeout Looking Less Likely

Needham & Company maintains a 'Hold' on Comtech Telecom (NASDAQ: CMTL).

Needham analyst says, "Comtech’s upside 1QF12 results appear to belie incrementally more challenging conditions in its core business, which is no longer expected to see growth in F12 (vs. prior expectations of ~5% growth). Additionally, we come away thinking the probability of a near-term takeout appears surprisingly low given the company has had no approaches from prospective buyers despite the recent best efforts of an activist investor...We make minor changes to our F12 and F13 estimates, which now stand at $409MM/$1.22 GAAP EPS and $410MM/$1.08, respectively."

For an analyst ratings summary and ratings history on Comtech Telecom click here. For more ratings news on Comtech Telecom click here.

Shares of Comtech Telecom closed at $29.55 yesterday.

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