J.P. Morgan Reiterates Neutral Rating on Mitel Networks (MITL)
J.P. Morgan is out with a research report this morning, where it reiterates its Neutral rating on Mitel Networks (NASDAQ: MITL); it has a $7.00 price target on the stock.
The JPM analysts cited the company's recently reported quarterly earnings results, which were below consensus, but in-line with their estimates. Gross and operating margins were weaker than expected, though.
The analysts noted that Mitel is likely aggressively discounting just to keep revenues stable.
As for valuation, the analysts remarked, “No change to our Dec 2011 price target of $7 which is based on a 33% discount to peers' 8.7x CY11E EV/EBITDA multiple applied to our $113M CY12E EBITDA forecast.”
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