- Piper Jaffray is cautious on Powerwave Tech (NASDAQ:PWAV) noting that based on their channel checks, they believe North American capital spending improved during the June quarter, but the rate of improvement was slower than they had anticipated.
Given Powerwave's exposure to the Americas (37% of 2005 sales), they have reduced their June quarter estimates below consensus. Firm's checks indicate steady capital spending improvement during Q2 levels from leading North American wireless carriers, but they believe the pace of improvement is slower than equipment vendors may have anticipated. Firm believes most carriers will meet capital spending goals during 2006, but they expect a more back-half-weighted year than normal seasonal trends,particularly for Cingular. Maintains Outperform but lowers tgt to $15 from $16.
Notablecalls: I don't expect PWAV to see much pressure following the call.
Given Powerwave's exposure to the Americas (37% of 2005 sales), they have reduced their June quarter estimates below consensus. Firm's checks indicate steady capital spending improvement during Q2 levels from leading North American wireless carriers, but they believe the pace of improvement is slower than equipment vendors may have anticipated. Firm believes most carriers will meet capital spending goals during 2006, but they expect a more back-half-weighted year than normal seasonal trends,particularly for Cingular. Maintains Outperform but lowers tgt to $15 from $16.
Notablecalls: I don't expect PWAV to see much pressure following the call.
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