Baird Upgrades Westell Technologies

Analyst Kenneth Murth upgrades the broadband access products company on good guidance, new product cycle for the fiscal year, and low valuation

Baird upgrades broadband access products company Westell Technologies (WSTL ) to outperform from neutral.

Analyst Kenneth Murth says his upgrade is due to solid fourth-quarter results, good guidance, new product cycle for fiscal 2006 (ending March), SBC conferencing extension (CPI division), and low valuation relative to peers.

He notes $78.2 million revenues and 12 cents operating earnings per share compare with his $77.8 million and 11 cents estimates, respectively. He says the upside came from slightly higher gross margin and lower operating expenses.

Murth raises his $311 million fiscal 2006 revenue to $314 million and 43 cents earnings per share to 50 cents due to increased expectations for BellSouth DSL adds and expanding margins. He sets $361 million fiscal 2006 revenue and 60 cents earnings per share estimates. He maintains a $9 target.

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