Hudson Securities Raises Estimates & PT On Aviat Networks

Hudson Securities raises its PT on Aviat Networks

to $8 and has a Buy rating. It is also raising its revenue and EPS estimates for FY11 to $482MM/($0.20) from $464MM/($0.32). FY12 goes up to $520MM/$0.32 from $515MM/$0.30. Hudson continues to believe that the demand in the wireless backhaul market remains strong and that AVNW is taking the necessary steps to re-align its operations. It believes valuation will rise as Street recognizes the turnaround that is underway. The company has a broad product line ranging from low capacity to high-capacity radios, a great distribution network and products that address the carriers' growth in data applications and legacy voice networks. Risks include a restructuring plan that is underway. Headcount reductions could disrupt financials in the near term. A slowdown in the general economic environment could slow the carrier's spending on next generation networks. AVNW is trading 20% higher at $6.27