Comtech Telecommunications (NASDAQ:CMTL) Coverage Initiated at Northcoast Research

Key Points

• Northcoast Research initiated coverage on Comtech Telecommunications with a buy rating and a $2.50 price target, implying about 46% upside from the prior close.
• Analyst sentiment remains mixed overall: one firm rates the stock Buy, one Hold, and one Sell, leaving the consensus rating at Hold with a $2.50 average price target.
• Comtech reported a smaller-than-expected quarterly loss of ($0.22) EPS versus estimates for ($0.27), though revenue of $106 million fell short of expectations and the stock has been trading well below its recent moving averages.

Investment analysts at Northcoast Research initiated coverage on shares of Comtech Telecommunications (NASDAQ:CMTL - Get Free Report) in a research note issued to investors on Thursday. The firm set a "buy" rating and a $2.50 price target on the communications equipment provider's stock. Northcoast Research's price objective points to a potential upside of 46.20% from the stock's previous close.

Other equities analysts have also issued reports about the stock. Wall Street Zen lowered shares of Comtech Telecommunications from a "hold" rating to a "sell" rating in a research report on Monday. Weiss Ratings lowered shares of Comtech Telecommunications from a "sell (d)" rating to a "sell (d-)" rating in a report on Tuesday, June 30th. One investment analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Comtech Telecommunications currently has an average rating of "Hold" and a consensus price target of $2.50.

Comtech Telecommunications Stock Performance

Comtech Telecommunications stock opened at $1.71 on Thursday. The firm has a market capitalization of $51.23 million, a P/E ratio of -0.77 and a beta of 1.51. The stock has a fifty day moving average price of $3.23 and a two-hundred day moving average price of $4.20. Comtech Telecommunications has a 52-week low of $1.59 and a 52-week high of $6.21. The company has a debt-to-equity ratio of 4.02, a current ratio of 1.61 and a quick ratio of 1.19.

Comtech Telecommunications (NASDAQ:CMTL - Get Free Report) last issued its earnings results on Monday, June 15th. The communications equipment provider reported ($0.22) EPS for the quarter, beating the consensus estimate of ($0.27) by $0.05. Comtech Telecommunications had a negative net margin of 5.52% and a positive return on equity of 9.77%. The company had revenue of $106.00 million for the quarter, compared to the consensus estimate of $110.20 million. As a group, analysts anticipate that Comtech Telecommunications will post -0.9 EPS for the current fiscal year.

Institutional Investors Weigh In On Comtech Telecommunications

Hedge funds have recently added to or reduced their stakes in the stock. QVT Financial LP increased its holdings in shares of Comtech Telecommunications by 41.4% in the fourth quarter. QVT Financial LP now owns 1,392,352 shares of the communications equipment provider's stock valued at $6,997,000 after purchasing an additional 407,998 shares in the last quarter. Marshall Wace LLP lifted its holdings in Comtech Telecommunications by 91.4% during the 4th quarter. Marshall Wace LLP now owns 735,775 shares of the communications equipment provider's stock worth $3,892,000 after buying an additional 351,318 shares in the last quarter. Beartown Capital Management LLC bought a new position in Comtech Telecommunications in the 4th quarter valued at $1,332,000. Globeflex Capital L P bought a new position in Comtech Telecommunications in the 1st quarter valued at $654,000. Finally, Potomac Capital Management Inc. acquired a new stake in shares of Comtech Telecommunications in the 4th quarter valued at $851,000.

Comtech Telecommunications Company Profile

Comtech Telecommunications Corporation NASDAQ: CMTL, founded in 1969 and headquartered in Melville, New York, is a leading global provider of advanced communications solutions. The company designs, develops, and deploys equipment, systems, and services that enable secure and reliable transmission of voice, video, and data. Over its history, Comtech has built a reputation for innovation across satellite communications, wireless data systems, and public safety networks, serving both commercial and government customers worldwide.

Comtech operates through two primary business segments: Commercial Solutions and Government Solutions.

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