UPDATE: Needham & Company Starts DASAN Zhone Solutions Inc (DZSI) at Buy
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(Updated - June 21, 2021 4:19 PM EDT)
Needham & Company analyst Ryan Koontz initiates coverage on DASAN Zhone Solutions Inc (NASDAQ: DZSI) with a Buy rating and a price target of $26.00.
The analyst commented, "We initiate coverage of DZSI with a Buy rating and a $26 price target. DZSI delivered a solid Q1 and set what we view as an achievable outlook for the balance of F21. We see strong potential for the company's mobile products to gain momentum outside of APAC, while fiber access products see tailwinds from US rural broadband initiatives and Huawei displacement. We look for progress on operating margin expansion through product rationalization, growth in higher-margin Western markets and opex efficiencies.
Boosted by a series of impressive short- and long term-catalysts highlighted below, we model F21/F22 revenue growth of 12%/10%, respectively, and EPS of $0.35/$0.59. Our $26 PT is based on an EV/Sales multiple of 1.6x our F22 estimate."
Shares of DASAN Zhone Solutions Inc closed at $21.53 yesterday.
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