Tuesday, March 12, 2019

Comtech Telecommunications (CMTL)

A Deeper Dive into 2Q19; Shares “On Sale” Following Recent Decline?

Comtech Telecommunications Corp. engages in the design, development, production, and marketing of products, systems, and services for advanced communications solutions in the United States and internationally. It operates in three segments: Telecommunications Transmission, Mobile Data Communications, and RF Microwave Amplifiers. 

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

• Solid Quarter, But Stock Reacts Poorly. Comtech reported solid 2Q19 results, as we highlighted in our March 7, 2019 report. In spite of the operating results, the shares dropped over 14% on the news before recovering somewhat off the intraday lows.  
• A Reaction to Two Large Contracts. We believe the stock weakness can be tied to the delay in two large contracts CMTL is pursuing: BFT-2 and troposcatter. Both, multi-hundred million dollar potential awards. While in neither case have final awar… 

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*Analyst certification and important disclosures included in full report.  NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.