NEW YORK (TheStreet) -- DragonWave (DRWI) shares are up 1.3% to $2.40 in pre-market trading Friday, continuing the momentum it gained after reporting better than expected first quarter earnings on Wednesday.

Analysts at TD Securities have upped the broadband wireless and psuedowire equipement developer's price target to $2.75 from $1 as a result of the earnings beat which saw the company report $28.8 million in revenue, up from the $17.1 million in revenue it recorded the previous quarter.

"We now rate DragonWave HOLD and raise our target price to $2.75 (from $1.00), based on 1.0x EV/Sales applied to our forward expectations. Although this is a premium to peers at 0.1-0.5x, we believe that this valuation is supported by the potential for large deal signings to have a material impact on the company's prospects," said analysts at the firm.

TheStreet Ratings team rates DRAGONWAVE INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:

"We rate DRAGONWAVE INC (DRWI) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its poor profit margins and generally disappointing historical performance in the stock itself."

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