Here's the Lehman release - 45 price target, and more:
Headline: Gilat Satellite Networks: Expect Solid 3Q97; Rating Upgraded To Buy
Author: Tim Luke 1(212)526-4993
Company: GILTF
Industry: TELECM
Ticker : GILTF Rank(Prev): 2-Outperform Rank(Curr): 1-Buy
Price : $33 52wk Range: $38-17 Price Target: $45
Today's Date : 09/25/97
Fiscal Year : DEC
------------------------------------------------------------------------------
EPS 1996 1997 1998 1999
QTR. Actual Prev. Curr. Prev. Curr. Prev. Curr.
1st: 0.24J 0.28A 0.28A - -E - -E - -E - -E
2nd: 0.26A 0.34A 0.34A - -E - -E - -E - -E
3rd: 0.33A 0.39E 0.39E - -E - -E - -E - -E
4th: 0.43A 0.50E 0.50E - -E - -E - -E - -E
------------------------------------------------------------------------------
Year:$ 1.22A $ 1.51E $ 1.51E $ 1.90E $ 1.90E $ - -E $ - -E
Street Est.: $ 1.54E $ 1.50E $ 1.88E $ 1.89E $ - -E $ - -E
------------------------------------------------------------------------------
Price (As of 9/23): $33 1/4 Revenue (1997): 104.6 Mil.
Return On Equity (97): 16.4 % Proj. 5yr EPS Grth: 30.0 %
Shares Outstanding: 11.2 Mil. Dividend Yield: N/A
Mkt Capitalization: 373.63 Mil. P/E 1997; 1998: 21.5 X; 17.1 X
Current Book Value: $8.64 /sh Convertible: Yes
Debt-to-Capital: 43.6 % Disclosure(s): C
------------------------------------------------------------------------------
* This morning we have upgraded our rating on Gilat Satellite Networks, a
leader in the expanding VSAT satellite terminal industry, to Buy from
Outperform.
* Our rating change is based on increasing confidence in Gilat's ability to
comfortably meet or exceed earnings estimates for 1997 and 1998. New
initiatives in Internet access and rural telephony are gaining momentum,
growing backlog and healthy visibility.
* Gilat is likely to deliver solid 3Q98 results at least in line with our
estimates of $26.9 million in sales with earnings of $0.39. Backlog levels
may continue their upward movement from record levels (including letters of
intent) of more than $40 million.
* We believe Gilat is targeting at least two additional rural telephony
projects for 1997. In addition Gilat, remains well placed to attract new
distribution partners to complement GE alliance during 1998.
* Buy rating and price target range of $40-$45 based on Gilat's ability to
deliver earnings growth of 25%-30% in 1998 and 1999, allowing the shares to
trade at a multiple of approximately 22-23 times our 1998 estimate of $1.90.
------------------------------------------------------------------------------
Company Description
Gilat Satellite Networks designs, develops, manufactures, markets and supports
VSAT satellite earth stations, hub equipment and related software products.
Gilat's products are incorporated primarily into telecommunications networks
which provide satellite-based communications between a central location (hub)
and numerous of geographically-dispersed locations. In addition to
successfully targeting traditional VSAT markets as large retailers, chains of
gas stations and supermarkets, the company has pioneered the large scale use
of VSATs for certain applications such as on-line computerized lotteries, real
time stock exchange trading, paging, Internet access and rural telephony. The
company has grown rapidly and taken market share to become a leader in the
VSAT market with revenues reaching $74 million in calendar 1996.
A Leader In The VSAT Industry
We believe Gilat Satellite Networks remains an exciting investment vehicle in
the dynamic telecommunications equipment sector as it continues to extend its
share of the global market Very Small Aperture Terminals (VSATs) for private |
