Needham & Company Starts Xtera Communications (XCOM) at Buy

Needham & Company initiates coverage on Xtera Communications (NASDAQ: XCOM) with a Buy rating and a price target of $9.00.

Analyst Alex Henderson commented, "We are launching coverage of Xtera with a Buy rating and a Target Price of $9. The primary driver of our conviction in the company's outlook is the strong backlog and qualified deal pipeline. Xtera has or shortly should have roughly $200MM in orders ship-able in the FY2016-FY2017 time frame equal to 100% of FY16 and 50% of our FY17 forecast. In addition, Xtera is chasing roughly $1 billion in highly qualified deals, which should add to visibility. XCOM is trading at a slight 0.6x EV/Sales on CY16 estimates and should see improving gross margins, operating margins and cash flow. We are confident this trajectory will improve XCOM's valuation"

For an analyst ratings summary and ratings history on Xtera Communications click here. For more ratings news on Xtera Communications click here.

Shares of Xtera Communications closed at $5.02 yesterday.

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