CMTL - Comtech dips 3% as Jefferies sees more issues cuts to Hold

Comtech Telecommunications (NASDAQ:CMTL) has slipped 3.3%, bucking a broadly higher market, as Jefferies cuts the telecom to Hold from Buy. A material recovery will "take longer than we thought," looking much less likely until fiscal 2024, analyst George Notter said. The firm likes changes being made at the organization, including a new chief operating officer as well as divisional managers, and a new boardmember along with re-segmenting its business by product lines. But Comtech is "getting dinged by a host of issues right now" - starting with Russia and Ukraine spurring estimate cuts three months ago, but adding supply chain issues, a proxy-contest distraction, and now deferrals in specific 911 projects. "April results and forward-looking guidance were disappointing," Notter said. "They’re seeing deferrals in specific 911 projects, and recovery of their Satellite Earth Station business is taking much longer than we had originally expected given recessionary fears and inflationary cost

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Comtech dips 3% as Jefferies sees more issues, cuts to Hold