Tranzeo Wireless Technologies Inc TZWLF

Canaccord Analysis update

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Tranzeo Wireless shares fall as co says not to meet FY rev view4 minutes ago by Thomson Reuters

 

Nov 2 (Reuters) - Shares of Tranzeo Wireless Technologies Inc <TZT.TO> fell to their lowest level in 16 months on Tuesday, a day after the Canadian wireless equipment maker said it would not meet its revenue outlook for 2010.

Tranzeo had earlier expected 2010 revenue of C$40-C$45 million.

Canaccord Genuity's Eyal Ofir expects the company to post 2010 revenue of C$26.7 million, down from his earlier view of C$35 million.

Ofir said the delay in securing an increased credit facility in October was also a cause for concern.

"While this announcement was important, we are disappointed at the amount of time it took management to gain additional access to credit, especially when a resolution was anticipated more than two months ago," he said in a note to clients.

He cut his price target on Tranzeo stock to 90 Canadian cents from C$1.50, but maintained his "speculative buy" rating.

Pitt Meadows, British Columbia-based Tranzeo's shares, which have lost over 32 percent of their value in the last month, touched a low of 40 Canadian cents, before paring some of the losses to trade at 43 Canadian cents on Tuesday on the Toronto Stock Exchange. (Reporting by Abhiram Nandakumar in Bangalore; Editing by Don Sebastian)