WR Hambrecht upgraded Comverse Technology (CMVT) to buy from hold.
Analyst Reginal King says Hambrecht is transitioning his coverage to the communications infrastructure universe, and he upgraded Comverse. King Believes Comverse is ideally positioned to capitalize on the accelerating growth of mobile data traffic, and an associated increase in carrier spending on messaging and multimedia solutions.
King notes Comverse will report first-quarter results tonight, and he believes the results will likely exceed his and the Street's 2 cents EPS estimate on $210.8 million revenues. He expects management may guide second-quarter top-line and bottom-line results at or ahead of the current Street estimates of 3 cents EPS on $215.2 million in revenue. He raised his target to $22.