Sycamore Networks (NASDAQ:SCMR) will probably report weak legacy revenues, according to Auriga, which reiterates their "Buy" rating on the company.
Auriga said, "Currently, SCMR consists of three disparate businesses: a legacy optical switching business, a leftover acquisition of Eastern Research, a maker of small cross-connect systems, and the fledgling IQstream wireless backhaul optimizer."
They feel Sycamore will narrow their focus and migrate toward IQstream as their primary, and probably, sole business
Auriga believes it would make them a more attractive takeover target, as well as more appealing to investors.
Sycamore closed Tuesday at $30.02, dropping $0.67, or 2.18 percent. A price target of $44 has been placed on them by Auriga.
Trading volume was about double the usual 3-month average.
No comments:
Post a Comment