Needham & Company Maintains a 'Buy' on Aviat Networks (AVNW); Mixed Results; Valuation Still Attractive
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Price: $22.15 +1.51%
Rating Summary:
8 Buy, 1 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
8 Buy, 1 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company maintains a 'Buy' on Aviat Networks (NASDAQ: AVNW) price target of $9.50.
Analyst, Richard Valera, said, "AVNW showed the solid operational performance in many aspects of its business in 4QF12, including revenue, bookings, op-ex and cash generation. However, the company’s gross margin, historically one of its greatest challenges, disappointed—hurt by an unfavorable product mix reflective of the challenging pricing in several international markets. While the near-term margin setback is disappointing, the company made a credible case for improvement in F2H13. We believe that given the company’s EV/F12 sales multiple of ~0.1x, that improvement of GM to the low 30% level, combined with solid revenue performance could drive the shares meaningfully higher from current levels."
"Our F13 goes to $466MM/$0.15 from $458MM/$0.20 NG EPS and we introduce F14 estimates of $489MM and $0.30."
For an analyst ratings summary and ratings history on Aviat Networks click here. For more ratings news on Aviat Networks click here.
Shares of Aviat Networks closed at $2.35 yesterday.
Analyst, Richard Valera, said, "AVNW showed the solid operational performance in many aspects of its business in 4QF12, including revenue, bookings, op-ex and cash generation. However, the company’s gross margin, historically one of its greatest challenges, disappointed—hurt by an unfavorable product mix reflective of the challenging pricing in several international markets. While the near-term margin setback is disappointing, the company made a credible case for improvement in F2H13. We believe that given the company’s EV/F12 sales multiple of ~0.1x, that improvement of GM to the low 30% level, combined with solid revenue performance could drive the shares meaningfully higher from current levels."
"Our F13 goes to $466MM/$0.15 from $458MM/$0.20 NG EPS and we introduce F14 estimates of $489MM and $0.30."
For an analyst ratings summary and ratings history on Aviat Networks click here. For more ratings news on Aviat Networks click here.
Shares of Aviat Networks closed at $2.35 yesterday.
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