UI - Aviat Networks: Strong And Improving Market Position Is Underappreciated
- New management focused the business on competing where Aviat has a strong competitive advantage. Aviat's customer base of hundreds of non-telecom companies results in less competition and a higher-quality business.
- Long runway for 8% organic revenue growth plus continued margin expansion which drives double-digit profit growth. Strong FCF generation supports buyback and acquisitions ($200m of available, 60% of market cap).
- Aviat shares trade at a discounted 10x forward P/E, as the market does not appreciate the improved quality of Aviat's business. I expect a 30%+ CAGR over the next 4 years.
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Aviat Networks: Strong And Improving Market Position Is Underappreciated