Nominates 3 Candidates For Board. Yesterday, Outerbridge Capital Management took the next step in its quest for a review of strategic alternatives with the nomination of three candidates for election to the Company's Board of Directors. The nominees, Wendi Carpenter, Sidney Fuchs, and Jonathan Wackrow, possess deep operational, financial, and strategic experience within the government, satellite, law enforcement, and public safety sectors, according to their bios.June Letter. Recall, in its June letter seeking a review of strategic alternatives, Outerbridge Capital stated it believes that while "Comtech continues to be a market leader with best-in-class products and strong growth prospects, the Company...remains significantly undervalued." Outerbridge valued CMTL shares in the $32-$40 range. In yesterday's letter, Outerbridge stated that its "due diligence has bolstered our conviction in Comtech’s tremendous upside potential..." Outerbride beneficially owns 4.6%, including options, of Comtech.Governance Changes. Comtech already has taken steps by adding new Board members over the past 18 months, with three existing long-time members expected to retire following the December annual meeting. The Board will now consist of four independent directors and Company CEO Kornberg.Ownership. A quick review of Comtech's ownership indicates Officers & Directors owned 5.8% as of the last proxy. As of the end of June, institutions owned about 79%, with Blackrock the largest holder at 16.2%. Of the top 10 mutual fund owners, eight were ETF's or index funds, owning a combined 17%.Maintain Outperform and $30 Target Price. We continue to rate CMTL shares Outperform with a $30 twelve-month price target. This target represents an EV/EBITDA multiple of 13.0 times our FY2021 adjusted EBITDA estimate of $75.1 million and 12.1x our $80 million FY22 EBITDA estimate. We believe the multiple, large opportunities ahead of Comtech could be transformative, while the proxy fight may force management to take steps to increase shareholder value, such as repurchasing shares. Read More >>