Southwest Securities keeps strong buy on CellStar (CLST )
Analyst Christopher Case says CellStar's new pact with Motorola's Canopy wireless-broadband system is particularly advantageous for those less-populated regions where cable or fiber is too expensive to install, and where infrastructure may not be available. Importantly, he says the federal government has $1.4 billion available in low-cost loans or grants for those service providers who provide broadband service to rural areas.
Case notes CellStar will be selling to rural wireless and wireline service providers initially. He sees a 7 cents fiscal (Nov.) loss, and 84 cents fiscal 2004 earnings per share. He's keeping his $21 12-month price target.