Needham & Company Maintains a 'Buy' on Anaren (ANEN); NT Wireless Weakness Drives Estimate/PT Reduction, But Expected Pick Up in 2012
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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 lowered from $23 to $20.
Needham analyst says, "We believe demand in ANEN’s wireless business, which fell off sharply during the September-ending quarter, has yet to see any meaningful recovery, as the industry continues to work through what appears to be a significant inventory overhang. That said, we continue to believe ANEN remains well positioned for what should be a solid resumption in demand in C2012 after inventories are burned off and some of the cap-ex constraint from the AT&T (NYSE: T) / T-Mobile (both N/R) proposed merger, among other factors, abates. Separately, while we continue to see ANEN as an attractive long-term M&A target, it appears to us that the sense of M&A urgency/enthusiasm seen earlier in the year has abated recently, perhaps making M&A a less likely NT catalyst."
"Our F12 estimates are reduced to $160MM/$0.85 from $164MM/$0.96. Our F13 estimates are only slightly changed, though we would acknowledge a potentially higher level of risk given the uncertainty regarding the natural level of wireless demand. Our new F13 estimates are $180MM/$1.39 down from $182MM/$1.41."
For an analyst ratings summary and ratings history on Anaren click here. For more ratings news on Anaren click here.
Shares of Anaren closed at $16.88 yesterday.
Needham analyst says, "We believe demand in ANEN’s wireless business, which fell off sharply during the September-ending quarter, has yet to see any meaningful recovery, as the industry continues to work through what appears to be a significant inventory overhang. That said, we continue to believe ANEN remains well positioned for what should be a solid resumption in demand in C2012 after inventories are burned off and some of the cap-ex constraint from the AT&T (NYSE: T) / T-Mobile (both N/R) proposed merger, among other factors, abates. Separately, while we continue to see ANEN as an attractive long-term M&A target, it appears to us that the sense of M&A urgency/enthusiasm seen earlier in the year has abated recently, perhaps making M&A a less likely NT catalyst."
"Our F12 estimates are reduced to $160MM/$0.85 from $164MM/$0.96. Our F13 estimates are only slightly changed, though we would acknowledge a potentially higher level of risk given the uncertainty regarding the natural level of wireless demand. Our new F13 estimates are $180MM/$1.39 down from $182MM/$1.41."
For an analyst ratings summary and ratings history on Anaren click here. For more ratings news on Anaren click here.
Shares of Anaren closed at $16.88 yesterday.
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