C.E. Unterberg, Towbin has published an update for wireless backhaul solutions company Ceragon Networks Ltd. (Nasdaq: CRNT; TASE:CRNT), in which it reiterated its "Buy" rating and set a target price of $14 per share.
In its review, entitled "Raising Price Target on Strong Fundamentals," C.E. Unterberg, Towbin writes, "We believe Ceragon’s business remains strong in the June quarter and the outlook is strong for the foreseeable future. We believe our estimate for 19% growth in 2008 will prove very conservative and believe the company can continue to outperform street expectations."
Ceragon ended the first quarter of 2007 with a pro-forma net profit of $3 million on $33.9 million revenue. The company's stock has soared 70% since it unveiled its results.
C.E. Unterberg, Towbin notes that Ceragon will be hosting an analyst meeting at NXTComm in Chicago on June 20. "We expect a very positive tone, as the company continues to perform ahead of competition with a more robust feature set than competitors and new features on the way, especially in IP."
As to the future, C.E. Unterberg, Towbin expects Ceragon's revenue for the second quarter to come in at $35 million. "We believe Ceragon is well-positioned to grow significantly faster than the broader telecom equipment group and therefore reiterate our "Buy" rating," it concludes.
Published by Globes [online], Israel business news - www.globes.co.il - on June 18, 2007
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