Anaren Beats; Kept a Hold Rating
Anaren Business Benefits - Multiple Industry Opportunities
Anaren Inc. (
ANEN), a leading provider of microwave components and subassemblies for the wireless and defense industries, reported 2nd quarter fiscal 2009 financial results above our estimates. The company made significant improvements related to the execution of development projects, production yields, and control of cost overrun.
Recent acquisitions of M.S. Kennedy and Unicircuit have further strengthened the company's Space & Defense business prospects.
The financial outlook of the company for the 3rd quarter is also encouraging. Anaren has a healthy product pipeline that spans multiple vertical markets, spreading sector-specific risk during turbulent market conditions.
However, ongoing global economic weakness, together with an anticipated decline of its high-margin IED products, may limit wireless infrastructure component businesses over the near-term. We maintain a Hold rating with a $15 valuation projection.
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