OTCPK:DRWIQ - Post by User
Post by
birdie22on Jan 17, 2017 9:20am
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Post# 25716646
Globe says DragonWave dealing with revenue decline
Globe says DragonWave dealing with revenue decline Globe says DragonWave dealing with revenue decline
DragonWave Inc (2) (C:DWI)
Shares Issued 6,104,173
Last Close 1/16/2017 $3.12
Tuesday January 17 2017 - In the News
The Globe and Mail reports in its Tuesday, Jan. 17, edition that Desjardins Securities analyst Maher Yaghi says DragonWave ($3.12) suffered through "another challenging quarter." The Globe's David Leeder writes in the Eye On Equities column that Mr. Yaghi notes the Ottawa-based provider of packet microwave solutions for Internet protocol networks "still has to deal with sharp revenue declines." He says: "The recent signing of the Sprint contract is an avenue that could generate growth for the company, but solid execution will be key for DWI to generate profit from this agreement, in our view. Overall, we still see too much risk in DWI to recommend the stock at current levels." Mr. Yaghi continues to rate the shares "hold," while shaving his share target by $1.10 to $3.30. Analysts on average target the shares at $2.51. Mr. Yaghi adds: "We had been cautious on DWI given the continued decline in revenue in recent quarters and its weak balance sheet. The contract with Sprint has the potential to improve both issues at once but until we see the actual ramp-up in sales, it is difficult to become bullish on the shares. We believe significant risk remains in the story."