The day after Comverse Technology Inc. (Pink Sheets: CMVT) CEO Andre Dahan announced his resignation, which will take effect next Friday, Oppenheimer & Co. raised its target price to $10, a 38% premium on yesterday's close of $7.25. Analysts Shaul Eyal and Hugh Cunningham reiterated their "Outperform" recommendation.
Eyal and Cunningham say that Dahan's departure and Comverse's announcement of a new corporate structure and international management team are positive developments as they indicate that resolution of the filings issue is edging closer, the company's CNS division is improving operationally and financially, and that management is taking aggressive steps to whip the division into shape.
They add that Comverse's improved operations and cash position and the search for a CEO for the CNS division means that Comverse is in no immediate rush to sell the division, and can wait for higher valuations.
Published by Globes [online], Israel business news - www.globes-online.com - on March 1, 2011
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