Airspan Networks initiated with "buy"

03/05/04 - Miller Johnson Steichen Kin.

NEW YORK, March 5 (New Ratings) – Analyst Cary S Robinson of Miller Johnson Steichen Kinnard initiates coverage of Airspan Networks Inc (AIRN) with a "buy" rating. The target price is set to $10.

Shares of Airspan Networks, a leading provider of wireless voice and data systems, are currently trading at $5.70.

According to Miller Johnson Steichen Kinnard’s research note published yesterday, the company reported Q403 results ahead of expectations, with revenues and gross profits at $9 million and $2.3 million, respectively. Continued robust demand for wireless systems, new customers and an expanded product range would drive the company’s revenue growth in 2004, the analyst believes. Airspan Networks’ 2004 revenue growth is estimated at 112%, mainly on account of the strength of the company’s existing business lines and the Proximity product line taken over from Nortel.

According to Miller Johnson Steichen Kinnard, Airspan Networks would continue to endeavor to reduce its operational costs during 2004. The company is expected to achieve EPS breakeven in Q404, the analyst says.

The EPS estimates for FY04 and FY05 are -$0.74 and $0.00, respectively.

Miller Johnson Steichen Kinnard initiates coverage of Airspan Networks Inc with a "buy" rating.