Aviat Networks (AVNW – Research Report), the Technology sector company, was revisited by a Wall Street analyst on January 18. Analyst Erik Suppiger from JMP Securities remains neutral on the stock and has a $50.00 price target.
Erik Suppiger has given his Buy rating due to a combination of factors surrounding Aviat Networks’ recent strategic moves and financial projections. He considers the acquisition of NEC’s wireless transport business to be a positive development for Aviat Networks, as it is expected to enhance the company’s scale, introduce complementary technology, and expand its tier 1 carrier relationships, all of which are anticipated to contribute to Aviat’s long-term earnings growth. The acquisition’s price, initially set at $70 million but adjusted to $65.5 million, is deemed attractive, especially given the $35 million in inventory that came with the purchase. This favorable valuation is underscored by the comparison to other broadband equipment vendors’ trading multiples, making Aviat’s purchase particularly economical.
Additionally, Suppiger believes that Aviat Networks’ centralized and efficient organizational structure will foster operating leverage, thereby making the acquisition accretive to earnings by the end of the calendar year 2024. This is highlighted by the streamlined integration of personnel from NEC’s more extensive workforce. Furthermore, his reiteration of a Market Outperform rating with a $50 price target is based on initiating new estimates for CY25 and applying an 11x multiple to the CY25 EPS estimate of $4.36. This multiple represents a discount when adjusted for growth in comparison to Aviat’s competitors, further reinforcing the analyst’s confidence in the stock’s potential for appreciation.
In another report released on January 18, Lake Street also assigned a Buy rating to the stock with a $51.00 price target.
AVNW’s price has also changed slightly for the past six months – from $31.440 to $31.050, which is a -1.24% drop .
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Aviat Networks (AVNW) Company Description:
Aviat Networks, Inc. engages in the design, manufacture, and sale of wireless networking products and solutions. Its product includes wireless transmission networking systems for microwave and millimeter wave networking applications such as microwave routers, microwave switches, and split mount RF unit. It also offers services such as network planning and design, site surveys and construction, systems integration, installation, maintenance, network monitoring, training, and customer services. It operates through the following geographical segments: North America, Africa and the Middle East, Europe and Russia, and Latin America and Asia Pacific. The company was founded in 1984 and is headquartered in Milpitas, CA.
Read More on AVNW:
- Aviat Networks named a ‘2024 Top Pick’ at Northland
- Needham comm infrastructure analyst holds analyst/industry conference call
- Aviat Networks participates in a conference call with Lake Street
- Aviat Networks management to meet with Roth MKM
- Aviat Networks Completes the Acquisition of NEC’s Wireless Transport Business
