Neutral Tandem Shares Rise After Upgrade
NEW YORK (AP) ¿ Shares of telecommunications equipment maker Neutral Tandem Inc. rose Wednesday as an analyst upgraded the stock, saying he expects strong growth in the next couple of years and a recent sell-off makes the shares attractive.
R.W. Baird analyst William Power said in a note to investors that the company, which provides services that connect phone networks between providers, will have 36.1 percent revenue growth in 2009, while earnings per share will grow 58.3 percent.
Growing numbers of wireless subscribers and continuing strength in the company's older markets bode well for the future, Power said.
He estimates earnings per share of $1.14 in 2009, growing to $1.40 in 2010.Analysts surveyed by Thomson Reuters, on average, expect profit of $1.16 per share and $1.43 for those years, respectively. Power upgraded his rating on the stock to "Outperform" from "Neutral" and raised his target price by $5 to $33. Neutral Tandem shares, which hit a 12-month high of $32.57 earlier this month and have since lost a quarter of their value, rose $2.12, or 8.7 percent, to $26.39 in afternoon trading Wednesday.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV