Needham & Company Maintains a 'Buy' on ARRIS Group (ARRS); Looking For Better in 2H12
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Price: $31.66 --0%
Rating Summary:
5 Buy, 11 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
5 Buy, 11 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
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Needham & Company maintains a 'Buy' on ARRIS Group (NASDAQ: ARRS) price target of $41.00.
Analyst, Richard Valera, said, "ARRIS faces challenging dynamics in its core business, which include a sluggish cable cap-ex environment and heavy ASP pressure in CMTS business, as well as near-term dilution from its recently closed BigBand acquisition. That said, it also has a strong product cycle with its new Moxi home gateway, trades at a cash-adjusted 12x our 2013 EPS estimate and should see improving margin in 2H12 as it enacts costs cuts related to its recent BigBand acquisition."
"Our 2012 revenue estimate is increased to $1.25B from $1.18B due to the addition of BigBand, but EPS is reduced to $0.78 from $0.89, including ~$0.05 dilution from BigBand and $0.01 dilution from a higher 1Q tax rate. We initiate 2013 estimates of $1.34B and $1.03 NG EPS."
For an analyst ratings summary and ratings history on ARRIS Group click here. For more ratings news on ARRIS Group click here.
Shares of ARRIS Group closed at $12.33 yesterday.
Analyst, Richard Valera, said, "ARRIS faces challenging dynamics in its core business, which include a sluggish cable cap-ex environment and heavy ASP pressure in CMTS business, as well as near-term dilution from its recently closed BigBand acquisition. That said, it also has a strong product cycle with its new Moxi home gateway, trades at a cash-adjusted 12x our 2013 EPS estimate and should see improving margin in 2H12 as it enacts costs cuts related to its recent BigBand acquisition."
"Our 2012 revenue estimate is increased to $1.25B from $1.18B due to the addition of BigBand, but EPS is reduced to $0.78 from $0.89, including ~$0.05 dilution from BigBand and $0.01 dilution from a higher 1Q tax rate. We initiate 2013 estimates of $1.34B and $1.03 NG EPS."
For an analyst ratings summary and ratings history on ARRIS Group click here. For more ratings news on ARRIS Group click here.
Shares of ARRIS Group closed at $12.33 yesterday.
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