BT Group Looks to US Market - Analyst Blog
BT Group Plc (
BT) reported 2Q09 results with in-line revenues and lower than expected earnings. The company is moving ahead with the expansion of its 21CN network.
The company recently announced plans to invest ?1.5 billion to make fiber-based, super-fast broadband available to as many as 10 million homes in the UK by 2012. BT Global continues to execute well, winning deals valued at ?8.4 billion in the trailing-12-month period. The company has reported slightly lower EBITDA margins due lower EBITDA of Global Services while pricing pressure is causing traditional revenues to decline.
Shares of BT are currently trading at 5.0x our 2009 earnings estimate of $4.14 after we have lowered our currency expectations for the British Pound against the US Dollar to $1.91 per ?1, compared to our previous $2.05 per ?1 expectation. We believe BT should trade at 5.25x our fiscal 2009 earnings estimate, which gives us a target price of $21.75 over the next six months. We continue to rate shares of BT a Hold and continue to believe that BT will perform well in the US Markets.
Udayan Mukherjee contributed to the report.
Ciena Target Lowered, Still a Hold - Analyst Blog
Maryland-based
Ciena Corp. (
CIEN) is an original equipment manufacturer (OEM) of optical networking equipment, software and services. The company's FlexSelect platform has been gaining momentum and we believe the acquisition of World Wide Packets will further strengthen its base.
However, Ciena's sales cycle is lengthening as Tier 1 carriers proceed with caution, given the economic uncertainty. With the disappointing fourth-quarter results, we believe it would be difficult for the company to improve or maintain its growth rate given weak economic conditions. Ciena has provided a bleak outlook for the first quarter of 2009. As such, we are reducing our estimates for fiscal 2009 and 2010.
We maintain a Hold rating given the company's diminished outlook but lower our six-month price target to $6, given the uncertain macroeconomic conditions. This price is based on P/E multiple of 0.03x our 2009 EPS estimate of $0.18.
Hana Bio Shares Stay Submerged - Analyst Blog
Hana Bioscience Inc. (
HNAB) is a development-stage biopharmaceutical company focused on cancer and cancer supportive care. The company has a relatively diversified portfolio, but all candidates are in either the early stage or middle stage of development.
We are concerned about the competition the company will face in the cancer and cancer supportive-care areas. Cash position is also a matter of great concern.
We don't see huge upside potential for Hana shares in the next 6 to 12 months. Therefore, we rate Hana shares a Hold with a price target of $0.40. We think the risk/reward profile is balanced. Our price target represents a market cap of $13 million.
Conexant Works to Deleverage - Analyst Blog
Conexant Systems, Inc. (
CNXT) designs and develops semiconductor solutions that enable consumers to access the digital world. The company's products enable set-top boxes (STBs), personal computers (PCs), and game terminals to share voice, video, and data over broadband networks including asynchronous digital subscriber line (ASDL), cable, and direct broadcast satellite systems.
Recently, Conexant closed the deal for SigmaTel's Multi-Function Printer unit, which it purchased for $16 million and divested its broadband media processing segment. The company is in the process of deleveraging its balance sheet and retired almost $133 million of debt in fiscal 2008.
Going forward, management had limited visibility owing to the global financial crisis and expects revenues between $103 million and $108 million in the first quarter of fiscal 2009, down 12%-16% sequentially. We continue to rate the stock a Hold and have set a target price of $1.50.
