Ceragon Networks (CRNT – Research Report), the Technology sector company, was revisited by a Wall Street analyst on January 18. Analyst Alex Henderson from Needham remains neutral on the stock and has a $5.25 price target.
Alex Henderson has given his Buy rating due to a combination of factors surrounding Ceragon Networks. The company recently completed an accretive acquisition that bolsters its capabilities, secured a significant $150 million contract with a prominent Indian telecom operator, and reported fourth-quarter results that exceeded expectations. Additionally, Ceragon has provided an optimistic revenue forecast for the upcoming year and has accelerated its revenue target achievement by one year, aiming to reach $500 million by 2026.
On top of these financial and strategic milestones, Ceragon is gearing up to introduce a series of major new products in the first quarter of the year. These offerings are not only equipped with enhanced features and greater capacity for customers but are also notably more cost-effective to produce, with a reduction in manufacturing costs of 30%-40%. This strategic move is expected to enable Ceragon to lower its prices to customers while simultaneously enjoying increased gross margins, which further justifies the Buy rating from Henderson.
CRNT’s price has also changed moderately for the past six months – from $2.200 to $2.520, which is a 14.55% increase.
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Ceragon Networks (CRNT) Company Description:
Ceragon Networks Ltd. engages in the provision of wireless backhaul solutions. Its products include radio units, management systems, small cell hauling, packet and hybrid microwave, and long haul solutions. The company renders transmission capacity to mobile and fixed-line carriers, and private network operators. Ceragon Networks was founded on July 23, 1996 and is headquartered in Tel Aviv, Israel.
Read More on CRNT:
- Ceragon Networks sees FY24 revenue $385M-$405M, two estimates $380.78M
- Ceragon Networks reaffirms FY23 revenue view $338M-$346M, two estimates $341.6M
- Ceragon Anticipates Reaching the High-End of 2023 Revenue Guidance, Expects Double-Digit Growth and Targets Margin Expansion in 2024
- Ceragon Networks announces $150M agreement to modernize network in India
- Ceragon Networks’ Siklu deal adds growth, operational leverage, says Needham
