Oscar Gruss analysts Ziv Tal and Jonathan Kreizman, call Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR) president and CEO Tzvika Friedman a visionary in the WiMAX industry , and say his departure is a significant loss for the company.
The analysts nonetheless maintain their "Buy" recommendation with a $6 target price for the share.
According to Tal and Kreizman, Alvarion remains well positioned to win WiMAX deals. They note that undeveloped regions in the world still have unmet demand for broadband, and that in those areas WiMAX is the "most appealing and cost effective" option. As an industry leader, Alvarion stands to gain from future contracts.
The analysts add that "Alvarion is well established to benefit from consolidation and gain additional market share".
The analysts were disappointed with the third quarter guidance, which was below their expectations. Although they lowered their third quarter estimates to $58.3 million revenue and $0.03 earnings per share, they maintained their positive "Buy" recommendation.
In the short term, say the analyst, the stock will face some pressure from the selection process of a new CEO, a process they say can take as long as 2-6 months.
Alvarion share price fell over 16% yesterday, to $3.96, on volume nearly four times its average over the past three months. Its market cap fell to $245.3 million.
Published by Globes [online], Israel business news - www.globes-online.com - on July 30, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009