The extension of TeleNav's (NASDAQ:TNAV) agreement with AT&T (NYSE:T) should make the stock lighter, according to Canaccord, which sees the core operating fundamentals of the company as strong.
Canaccord says, "Announced two-year extension to AT&T agreement with no changes in terms, removing an overhang on the stock, in our opinion.
"We continue to believe that core operating fundamentals are strong and that opportunities from mobile advertising and commerce exist going forward. All businesses are growing and the outlook is for continued growth...FQ3/11 revenue/EPS guidance of $48M-$50M/$0.15-$0.17 vs. consensus of $46.3M/$0.13. F2011 revenue/EPS guidance of $195M-$200M/$0.79-$0.83 vs. consensus of $190M/$0.70 and previous guidance of $187-192M/$0.64-$0.72."
Canaccord Genuity reiterates a "Buy" rating on TeleNav (TNAV), which closed Friday at 8.95, up $1.58, or 21.44 percent. Canaccord raised their price target on TeleNav from $10 to $15.25.
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