Needham & Company Reiterates a 'Buy' on Comverge (COMV); Covenant Issue Seems Temporary & Hope Remains for Capital Raise
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Price: $1.74 --0%
Rating Summary:
0 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
0 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company reiterates a 'Buy' on Comverge (NASDAQ: COMV) price target of $3.00.
Analyst, Sean K.F. Hannan, said, "We believe COMV has made solid traction with its cost reduction efforts, and the next 2 years should also deliver solid double-digit top-line growth. Further positives should come through leverage on a more manageable cost structure (in addition to likelihood of further cost controls) that looks poised to drive solid EBITDA (with healthy opportunity for upside, in our view). We acknowledge the Grace Bay covenant non-compliance is a setback, but we believe the impact to be largely limited to 1Q results. Also, while a capital raise is still required to support ongoing operations (and ahead of next PJM-N/R auction), we are optimistic that COMV is moving closer to securing adequate funding."
"Adjusting model. Our prior 1Q est. of $21.5M and -$0.29 ($0.24, ex. opt.) is now $22.0M and -$0.29 (or, -$0.24). Our 2012 est. of $150M & $0.23 loss becomes $157.5M & -$0.23. We’re becoming more confident in model and upside opportunity."
For an analyst ratings summary and ratings history on Comverge click here. For more ratings news on Comverge click here.
Shares of Comverge closed at $1.71 yesterday.
Analyst, Sean K.F. Hannan, said, "We believe COMV has made solid traction with its cost reduction efforts, and the next 2 years should also deliver solid double-digit top-line growth. Further positives should come through leverage on a more manageable cost structure (in addition to likelihood of further cost controls) that looks poised to drive solid EBITDA (with healthy opportunity for upside, in our view). We acknowledge the Grace Bay covenant non-compliance is a setback, but we believe the impact to be largely limited to 1Q results. Also, while a capital raise is still required to support ongoing operations (and ahead of next PJM-N/R auction), we are optimistic that COMV is moving closer to securing adequate funding."
"Adjusting model. Our prior 1Q est. of $21.5M and -$0.29 ($0.24, ex. opt.) is now $22.0M and -$0.29 (or, -$0.24). Our 2012 est. of $150M & $0.23 loss becomes $157.5M & -$0.23. We’re becoming more confident in model and upside opportunity."
For an analyst ratings summary and ratings history on Comverge click here. For more ratings news on Comverge click here.
Shares of Comverge closed at $1.71 yesterday.
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