Of all the countries to do business in these days, Greece has got to be right at the bottom of the list for the majority of companies. After all, the eurozone country's debt troubles have been well documented in recent weeks and it remains unclear whether Greece can escape bankruptcy.
Apparently the situation has not intimidated DragonWave Inc. Last week, the Ottawa-based company announced that Cosmoline, a WiMAX network service provider in Greece, wants to standardize their backhaul solutions with the help of DragonWave technology.
Peter Misek, Canaccord Adams analyst, said the deal is a definite positive for DragonWave, whose stock has fallen more than 25% in March.
"This contract is for 1,000 wireless links, which we believe is worth about $10-million to DragonWave," said Mr. Misek.
"This win also indicates that DragonWave is gaining traction with its ultra-high-capacity Quantum product."
Noting that DragonWave also announced a share buyback plan for up to 10% of the public float, Mr. Misek reiterated his Buy recommendation and $17 price target. He views the recent pullback as a good opportunity.
"We believe this presents a solid entry point for investors looking for companies that will benefit from increased bandwidth demand on mobile networks, global 4G network deployments and the upcoming transition toward Ethernet microwave technologies," he wrote in a note to clients.