Needham & Company Trims PT on Echelon (ELON) Post Q3, Keeps 'Buy'
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Price: $21.88 --0%
Rating Summary:
4 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
4 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company trimmed its price target on networking company Echelon (NASDAQ: ELON) from $5 to $4 Friday following in-line Q3 with challenges ahead, although they are keeping a Buy rating on the name.
The analyst comments: "In general, we continue to believe ELON has solid fundamental powerline-based technology products that remain quite relevant in multiple application markets and geographies. While we acknowledge that near-term catalysts are lacking, we are positive on the company's traction to reduce its cost structure, improve its mix strategy and grow key partnerships with strategic, leading utilities in emerging geographies (i.e., Holley & ELO – both N/R). Consequently, we reiterate our Buy but lower our target to $4 (from $5) for longer-term investors, on ~1.2x our C13 rev. estimate of $106 million + net cash of ~$0.98/shr."
The firm lowered estimates. Dec. est. now $24.0M in revs. & -$0.10 (or, -$0.14 incl. opt.), vs. prior $25.4M & -$0.09 (or, -$0.13 incl. opt.). 2012 model now $134M & $0.15 loss (or -$0.33 loss, incl. opt.) vs. prior $135.4M & -$0.15 (or, -$0.34). 2013 model lowered to $106M & -$0.25 non-GAAP loss, vs. prior $129M & -$0.04
For an analyst ratings summary and ratings history on Echelon click here. For more ratings news on Echelon click here.
Shares of Echelon closed at $3.23 yesterday.
The analyst comments: "In general, we continue to believe ELON has solid fundamental powerline-based technology products that remain quite relevant in multiple application markets and geographies. While we acknowledge that near-term catalysts are lacking, we are positive on the company's traction to reduce its cost structure, improve its mix strategy and grow key partnerships with strategic, leading utilities in emerging geographies (i.e., Holley & ELO – both N/R). Consequently, we reiterate our Buy but lower our target to $4 (from $5) for longer-term investors, on ~1.2x our C13 rev. estimate of $106 million + net cash of ~$0.98/shr."
The firm lowered estimates. Dec. est. now $24.0M in revs. & -$0.10 (or, -$0.14 incl. opt.), vs. prior $25.4M & -$0.09 (or, -$0.13 incl. opt.). 2012 model now $134M & $0.15 loss (or -$0.33 loss, incl. opt.) vs. prior $135.4M & -$0.15 (or, -$0.34). 2013 model lowered to $106M & -$0.25 non-GAAP loss, vs. prior $129M & -$0.04
For an analyst ratings summary and ratings history on Echelon click here. For more ratings news on Echelon click here.
Shares of Echelon closed at $3.23 yesterday.
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