TD Newcrest Downgrades DragonWave (DRWI) to Hold; Lack of Visibility
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Price: $0.12 --0%
Rating Summary:
2 Buy, 6 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 6 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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TD Newcrest (assumes coverage and) downgraded DragonWave (NASDAQ: DRWI) from Buy to Hold. PT cut from $10 to $8.
TD analyst says, "Q4 results were in line on revenue; EPS reflected the lack of large customer deployments. We see mobile providers upgrading backhaul links (estimated at 30% of the network cost) in response to data growth, and DragonWave is a leading independent provider of high-capacity microwave backhaul solutions. Our rationale for downgrading to HOLD is 1) lack of visibility on the timing and magnitude of known large opportunities; 2) Q1/12 guidance that implies the balance of the business remains below the Q2/11 revenue peak, despite impressive new customer growth; and 3) little clarity around the ultimate earnings power of the business."
For more ratings news on DragonWave click here and for the rating history of DragonWave click here.
Shares of DragonWave closed at $7.28 yesterday.
TD analyst says, "Q4 results were in line on revenue; EPS reflected the lack of large customer deployments. We see mobile providers upgrading backhaul links (estimated at 30% of the network cost) in response to data growth, and DragonWave is a leading independent provider of high-capacity microwave backhaul solutions. Our rationale for downgrading to HOLD is 1) lack of visibility on the timing and magnitude of known large opportunities; 2) Q1/12 guidance that implies the balance of the business remains below the Q2/11 revenue peak, despite impressive new customer growth; and 3) little clarity around the ultimate earnings power of the business."
For more ratings news on DragonWave click here and for the rating history of DragonWave click here.
Shares of DragonWave closed at $7.28 yesterday.
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