Pacific Growth reiterated its overweight rating on UTStarcom (UTSI).
Analyst Joe Noel says he's heard rumors over the past six months that UTStarcom is working on large a PAS (personal-access system) order in Nigeria. He now believes the company's first deployments within that country are in the beginning stages, as part of a much larger contract signed last year. He says UTStarcom has made significant progress in geographic revenue diversification.
Noel notes that within China, 43% of all new landline installations are personal-access systems. He believes deployments into Nigeria will be meaningful to UTStarcom. Noel says his team will remain aggressive buyers of UTStarcom to up to the $45 level.