The share price of Ceragon Networks Ltd. (Nasdaq: CRNT; TASE:CRNT) jumped 14.8% on Nasdaq yesterday, after it announced two large contracts, one in North America and the other in India. The share price is up 52% from its low point in November.
Both orders are from current customers, although Ceragon did not mention names. The company will supply its wireless backhaul solutions to support the carriers' nationwide rollout of 4G LTE networks over the coming years.
Needham & Co. analyst Alex Henderson, who has been very optimistic about Ceragon, said, "We expect strong wins with this key new product, but the timing is much earlier than we had expected and comes in a window that is normally very slow. Moreover, we believe the India win is the first installment of a large build that could scope up to over $50 million over the next 12-24 months." He believes that the North American contract is either in Mexico or Canada.
Needham initiated coverage of Ceragon, after underwriting its secondary offering in 2012. Henderson gives a "Strong buy" recommendation, with a target price of $8, more than double its current price.
Ceragon's share price rose another 2.4% by mid-afternoon on the TASE today, after rising 11.8% yesterday. The share price is down 1.4% in premarket trading on Nasdaq today to $3.62, giving a market cap of $134 million.
Published by Globes [online], Israel business news - www.globes-online.com - on January 14, 2014
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