pdvWireless Target Cut At Canaccord After News Of FCC Extension

Canaccord's Michael Walkley cut pdvWireless Inc (NASDAQ: PDVW)'s price target from $79.00 to $50.00, maintaining the company's Buy rating. The rating change came after pdvWireless reported FY16Q4 EPS at $(0.47) vs. $(0.38) street estimates and revenues of $951 thousand vs. estimates of $1 million.

Although Q4 results came in line with Walkley's expectations, "management indicated it now anticipates receiving a notice of inquiry (NOI) from the FCC seeking additional information from stakeholders and incumbents in the 900Mhz band under review versus a notice of proposed rulemaking(NPRM)."

Related Link: pdvWireless Reports Fourth-Quarter And Year-End Results

In June 2014, pdvWireless purchased spectrum from Sprint Corp (NYSE: S) and "continues to expand its total footprint with strategic purchases," said Walkley. In order to do this however, management needed approval from the FCC to re-tune the bands. The analyst believes the approval will take longer than expected and lowered the price target accordingly.

At the time of writing, pdvWirelesss traded at $19.33, up 0.31 percent.