Needham & Company Maintains a 'Buy' on Network Engines (NEI); Loss of Telco & EMC Business Disappointing...Already Reflected in Share Price
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Price: $1.45 --0%
Rating Summary:
0 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 21 | New: 20
Rating Summary:
0 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 21 | New: 20
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Needham & Company maintains a 'Buy' on Network Engines (NASDAQ: NEI) price target lowered from $2.50 to $2.00.
Analyst, Sean K.F. Hannan, said, "NEI’s loss of the majority of its EMC business (NYSE: EMC) (announced 4/12) is a major blow and will be difficult to replace while volatility in Telecom project spending is creating near-term disruption. However, NEI management is optimistic that current business development activity/new wins could potentially provide some degree of a band-aid in early F13 and open doors to an eventual return to growth. The view may be optimistic and speculative at present, but we do believe non-EMC biz (including Symantec (Nasdaq: SYMC)(Not/Rated)) is generally healthy (albeit choppy) and should provide F13 support. With shares trading <50% of tangible book while our model does not suggest losses or erosion to shareholder equity, we view shares as washed out and maintain our rating."
"Our F3Q forecast becomes $53.5M and $0.01 ex. opt. (~B/E GAAP), vs. our prior $70.1 and $0.04. Our F12 forecast becomes $245M and $0.11, vs. prior $280M and $0.15. F13 now $218M & $0.05 (from $295 mln and $0.16)."
For an analyst ratings summary and ratings history on Network Engines click here. For more ratings news on Network Engines click here.
Shares of Network Engines closed at $0.92 yesterday.
Analyst, Sean K.F. Hannan, said, "NEI’s loss of the majority of its EMC business (NYSE: EMC) (announced 4/12) is a major blow and will be difficult to replace while volatility in Telecom project spending is creating near-term disruption. However, NEI management is optimistic that current business development activity/new wins could potentially provide some degree of a band-aid in early F13 and open doors to an eventual return to growth. The view may be optimistic and speculative at present, but we do believe non-EMC biz (including Symantec (Nasdaq: SYMC)(Not/Rated)) is generally healthy (albeit choppy) and should provide F13 support. With shares trading <50% of tangible book while our model does not suggest losses or erosion to shareholder equity, we view shares as washed out and maintain our rating."
"Our F3Q forecast becomes $53.5M and $0.01 ex. opt. (~B/E GAAP), vs. our prior $70.1 and $0.04. Our F12 forecast becomes $245M and $0.11, vs. prior $280M and $0.15. F13 now $218M & $0.05 (from $295 mln and $0.16)."
For an analyst ratings summary and ratings history on Network Engines click here. For more ratings news on Network Engines click here.
Shares of Network Engines closed at $0.92 yesterday.
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