Shares of Vyyo (VYYO) were among technology's winners Monday, climbing 14% after Needham raised its rating on the wireless broadband company to buy from underperform and slapped a $10 price tag on the shares.
In a research note, Needham analyst Anton Wahlman said the $10 target is based on projected 2007 sales of $84 million, which is up from the firm's earlier estimate of $64.7 million.
"There are numerous reasons why we choose this point in time to upgrade Vyyo to a 12-month buy rating. We believe the most important long-term factor is the increasing pressure that we believe will be put on the cable TV operators by several types of competitive carriers, most importantly the traditional telephone companies, and of them most importantly Verizon's Fiber-To-The-Home project, which is now in full swing and saw its first TV offerings start in late September," Wahlman said. "Under this scenario, cable TV operators will have to respond by creating more downstream and upstream bandwidth alike." Vyyo shares recently were trading up 71 cents to $5.69.
Ceragon Networks (CRNT - Get Report) slumped 12% after the broadband wireless-network equipment maker said it plans to write down $6.7 million to $7.2 million in inventory during the fourth quarter. Ceragon said the writedown is related to the elimination of its FibeAir 1500 product line, which is being replaced by the new FibeAir 1500P series. The elimination of the FibeAir 1500 will take place over the next two to three quarters, the Israeli company said. Ceragon also plans to record a $300,000 charge during the fourth quarter and first half of 2006, which is related to personnel termination expenses and a writedown of assets related to the assembly facilities used for the FibeAir 1500. Shares were trading down 48 cents to $3.49.Shares of NetEase.com (NTES - Get Report) fell 5% after the company said William Lei Ding, its founder, will become chief executive. Ding succeeds Ted Sun, who passed away in September. Chief Financial Officer Denny Lee and Chief Operating Officer Michael Tong previously had assumed Sun's responsibilities. "On behalf of our board of directors, we are delighted to have William take the leadership reins of NetEase to continue its strong momentum in online services, particularly in the development of online games for which William has been a strategic visionary and driving force," NetEase said. Shares were down $3.12 to $57.88.