Even though Summer Infant's (NASDAQ:SUMR) EVP of Product Development, Steve Gibree, has left the company, Needham believe the solid organizational structure of the company and CEOs background should make it less of a disruption than it could have been.
Needham said, "Mr. Steve Gibree, SUMR's EVP of Product Development, has left the company. While Mr. Gibree played a major role in the SUMR's growth in recent years, and is clearly one of SUMR's top executives (and shareholders), we believe SUMR's organizational structure, the depth of its talent pool, and the background of its CEO will prevent this move from causing significant disruption. We find the valuation of SUMR's shares to be compelling, and would view any weakness that might be related to this announcement as a buying opportunity."
A price target of $12 has been placed on Summer Infant by Needham & Company.
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