Needham & Company Maintains a 'Buy' on Anaren (ANEN); Reducing Estimates, But Maintain Rating on Value and M&A Potential
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Price: $27.98 --0%
Rating Summary:
0 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
0 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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Needham & Company maintains a 'Buy' on Anaren (NASDAQ: ANEN) price target of $23.00.
Needham analyst says, "While Anaren’s recent pre-announcement was disappointing, given some of the macro headwinds (esp. In S&D) and historic wireless volatility, it wasn’t shocking. As well, notwithstanding obvious macro headwinds, we believe the acute near-term weakness in both ANEN’s wireless and Defense & Space businesses is temporary and expect both will rebound solidly from 1Q levels within the next couple of quarters. Finally, we believe the recent appearance of Vintage Capital as a 9.9% shareholder likely increases the probability that ANEN could be acquired in the medium term. Accordingly, we maintain our Buy and our $23, as we increase our multiple to about 16.5x our F13 EPS in acknowledgement of higher M&A likelihood."
"With an admittedly high degree of uncertainty given limited management guidance and the lack of visibility in ANEN’s Wireless business, we are reducing our estimates. F12 now $167MM/$1.10 from $183MM/$1.31 and F13 now $186MM/$1.38 from $197MM/$1.52."
For more ratings news on Anaren click here and for the rating history of Anaren click here.
Shares of Anaren closed at $20.43 yesterday.
Needham analyst says, "While Anaren’s recent pre-announcement was disappointing, given some of the macro headwinds (esp. In S&D) and historic wireless volatility, it wasn’t shocking. As well, notwithstanding obvious macro headwinds, we believe the acute near-term weakness in both ANEN’s wireless and Defense & Space businesses is temporary and expect both will rebound solidly from 1Q levels within the next couple of quarters. Finally, we believe the recent appearance of Vintage Capital as a 9.9% shareholder likely increases the probability that ANEN could be acquired in the medium term. Accordingly, we maintain our Buy and our $23, as we increase our multiple to about 16.5x our F13 EPS in acknowledgement of higher M&A likelihood."
"With an admittedly high degree of uncertainty given limited management guidance and the lack of visibility in ANEN’s Wireless business, we are reducing our estimates. F12 now $167MM/$1.10 from $183MM/$1.31 and F13 now $186MM/$1.38 from $197MM/$1.52."
For more ratings news on Anaren click here and for the rating history of Anaren click here.
Shares of Anaren closed at $20.43 yesterday.
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