{"id":417051,"date":"2010-03-11T08:26:00","date_gmt":"2010-03-11T13:26:00","guid":{"rendered":"e2249889-c78b-43e3-9643-b1d7d4aa587b:406235"},"modified":"2010-03-11T08:26:00","modified_gmt":"2010-03-11T13:26:00","slug":"bullish-on-dragonwave-%e2%80%93-even-without-att","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/417051","title":{"rendered":"Bullish on DragonWave \u2013 even without AT&T"},"content":{"rendered":"

Shares of Ottawa-based DragonWave Inc.<\/a> have seen some turbulence in the past few weeks, recently dipping below US$10 on the Nasdaq<\/a> (its IPO price). Speculation that the next-generation data solutions provider for wireless networks may have lost the AT&T Mobilty award may be to blame. Kris Thompson at National Bank Financial suggested that there short selling in the United States could also be a factor.<\/p>\n

U.S. cable companies are also highlighting a strong interest in participating in DragonWave\u2019s area of expertise (mobile backhaul), which could also be scaring some investors away from the stock, the analyst noted.<\/p>\n

However, with or without AT&T Mobility as a customer, he recommends buying DragonWave. Mr. Thompson rates the stock at Outperform with a $17 price target \u2013 upside of more than 60%.<\/p>\n

\u201cOur top-down tower forecast does not heavily rely on AT&T Mobility as a customer,\u201d he said. The analyst believes that his fiscal 2011 revenue estimates would still be achievable if DragonWave deploys at Verizon Wireless at a level above his conservative expectations.<\/p>\n

If DragonWave does not win at AT&T, the stock could sell off further, which Mr. Thompson would consider a buying opportunity. He said much of the roughly 20% short interest on the stock would likely need to be covered on that news, which could prompt a rally on renewed buying volume.<\/p>\n

His target price does reflect expectations that Clearwire will deploy microwave backhaul more aggressively as it expands its footprint beyond the initial 120 million population. <\/p>\n

jratner@nationalpost.com<\/a> <\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Shares of Ottawa-based DragonWave Inc. have seen some turbulence in the past few weeks, recently dipping below US$10 on the Nasdaq (its IPO price). Speculation that the next-generation data solutions provider for wireless networks may have lost the AT&T Mobilty award may be to blame. Kris Thompson at National Bank Financial suggested that there short […]<\/p>\n","protected":false},"author":4059,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7,3],"tags":[],"class_list":["post-417051","post","type-post","status-publish","format-standard","hentry","category-news","category-wireless"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/417051","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/4059"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=417051"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/417051\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=417051"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=417051"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=417051"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}