Jefferies Upgrades CRNT To Buy, PT Goes To $15.50
January 14, 2011 10:00 AM
Jefferies reports that it has greater confidence in emerging market demand for Ceragon Networks Ltd. (NASDAQ: CRNT) wireless backhaul solutions, which should support growth this year. Developed market 4G builds should spur demand starting in 2012 and last for several years.
“Emerging markets: wireless continues to penetrate, driving increased bandwidth requirements,” Jefferies writes. “With less in-ground fiber capabilities and often a dispersed rural population, CRNT's wireless backhaul solutions are an attractive option, especially as its own-designed ASIC chips give it a competitive cost advantage. We expect a series of relatively small incremental deals to lead to 2011 growth for CRNT of 16% for revenues and 57% for EPS.”
Jefferies raises its rating to Buy from Hold, and its PT goes to $15.50 from $12.
Ceragon Networks closed Thursday at $13.26.
