Oppenheimer Maintains Outperform on Ceragon Networks (CRNT)

Oppenheimer is out with its report on Ceragon Networks (NASDAQ: CRNT), maintaining Outperform.

In a note to clients, Oppenheimer writes, "Based on our channel checks we believe Ceragon is executing well to its plan to convert Nera's shorthaul customers to its own solutions, a critical element in its ability to improve gross margins over time. That said, we believe Ceragon will likely maintain higher expenses through the end of the June quarter vs. original plan. This reflects a prolonged supply chain and manufacturing consolidation cycle as well as higher than thought operating expenses at Nera. Despite this near-term shortfall, which could make for quarterly losses, we believe Ceragon is still very much on track in delivering on the long-term synergy plans. Thus, we maintain our Outperform and $16 target. We see near-term risk in the shares."

Shares of CRNT closed Monday at $11.62, down 2.43% from Friday's close.