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The Oppenheimer investment house today publicized a note rating Elron Electronic Industries (Nasdaq:ELRN) a Buy, and setting the Israeli holding company a price target of $18.

The target is 93% above Elron's closing price yesterday.

The upgrade is based on Elron's low share price, which is an attractive opportunity to increase holdings in the company, the analysts write.

The merger with Elbit, which was delisted about two weeks ago, and the purchase if DEP Technologies, position Elron ¿ which is controlled by Tel Aviv-traded Discount Investment Corporation ¿ as a tightly-focused company with a clear holdings structure.

Oppenheimer sees the changes in Elron creating value for shareholders. The merger with Elbit will, for one thing, reduce management costs for the twain by $3 million to $4 million a year, the analysts calculate.

Although Elron is still operating in the red, two of its holdings ¿ Netvision Telesoft and Chip Express ¿ report a shift to positive Ebitda (earnings before interest, taxes, depreciation and amortization). The boost came from reorganization and cost-cutting.

Bank Hapoalim recently reiterated its high-risk Buy for Elron, after the company released its first quarter statement. But it cut Elron's price target to $11.8.

Elron reported losing $7.5 million for the first quarter, compared with losing $9.4 million in the parallel quarter. Most of the loss was generated by Elbit.